One year ago
»» One of Bill Ackman’s savviest investments was his short on the Municipal Bond Insurance Association. Ackman fought against the Triple-A-rated company for years.
Shorting MBIA was costly and led to years of losses as the company’s stock kept rising. Ackman also faced intense scrutiny from investors and regulators, as detailed in Confidence Game by Christine Richards. Yet Ackman had the last laugh. His shorts on MBIA yielded profits of $1 billion after the crash in 2008.
Ackman is on a new conquest: How to achieve permanent capital. In addition to outlining his desires in a May 25 letter, Ackman spent the first half of the year having discussions with investors about potentially raising as much as $3 billion from an initial public offering for a new fund. “If we could increase the amount of our capital that is permanent, it would enable us to be more opportunistic during times of market and investor distress, and would enable us to take larger stakes in a greater number of holdings,” Ackman wrote.
»» In an effort to become more investor friendly, the then-$4.6 billion Kingdon Capital Management altered its terms by eliminating an early redemption fine that penalized investors for taking money out after they had been invested for a year.
While Mark Kingdon’s firm continued to grow in terms of assets and personnel, performance this year is lagging. The firm’s flagship Kingdon Associates fund is up 0.76% through May, behind the AR U.S. Equity Index, which is up 2.71% for that period. In the short-term, that hasn’t stopped the firm from expanding. By mid-May, the firm managed $4.98 billion and tapped former SAC Capital Advisors portfolio manager Jonathan Siegel and former Indus Capital partners chief compliance officer Dennis Bertron.
Five years ago
»» Arpad Busson, founder of the then-$8.6 billion fund of funds firm EIM Group, focused his efforts on Absolute Return for Kids, a London-based organization that raises money for disadvantaged children worldwide. The gala, held at the Marlborough House near Buckingham Palace, raised $35 million.
Busson remains busy with his philanthropic efforts. This year’s annual charity gala for Absolute Return for Kids held in June 2011 raised $28 million. Guests included Moore Capital Management’s Louis Bacon, Winton Capital Management’s David Harding, the Man Group’s Pierre Lagrange, as well as actors Elizabeth Hurley, Kevin Spacey, and Royal newlyweds Prince William and Catherine Middleton. Tickets were £10,000 a piece. Among items for sale was an offer to have your child write a song with the lead singer of the band Kings of Leon, a makeover by designer Tom Ford, a chance to appear in the upcoming Les Misérables movie, and a weekend at next year’s Academy Awards in Los Angeles.
