Cytec Industries, Inc.
Recently, Citigroup came up with a 3C theme to play the chemical sector in 2013. 3C stand for Commodities, Construction and Consolidation. In this article, I will only focus on the third C, i.e. consolidation. Consolidation accelerated in chemicals during 2012 due to:
1) Cheap financing which made many deals accretive and attractive;
2) Opportunities to cut costs in a slow growth environment; and
3) Strong balance sheets that more »
John Burbank founded Passport Capital in 2000 after deciding that financial markets were placing too much emphasis on short-term results and not spending enough time looking at big-picture changes in the world. As such Burbank is more of a macro investor. This philosophy led Passport to short subprime mortgages in 2005, believing that investors were misunderstanding economic conditions behind the business. Passport then returned 219% in 2007. Passport, in contrast more »
I am of the opinion that there are two factors that give sizable value to non-controlling equity positions: dividend yields and good prospects of an M&A deal. That said, I like to look for good companies with either great sustainable dividends or with the characteristics that would attract a potential buyer. Good market positioning, low leverage, and high free cash flow generation are usually very relevant to attract a more »
Atlantic Investment Management, a fund run by Alexander Roepers with about $2 billion in assets under management, has filed with the SEC to disclose that it has purchased 3.9 million shares of Rockwood Holdings (NYSE: ROC). Rockwood is a $4 billion market cap company which developed specialty chemicals that are then used for a variety of functions, including auto bodies and pharmaceutical-related uses. Atlantic had initiated a position in more »
Passport Capital, managed by John Burbank, was founded in 2000 and focuses on fundamental macroeconomic insight in toggling its investment strategies. As detailed in his first quarter letter to investors, Burbank is quite bearish on the broader economic picture and on U.S. equities. His dictum for now is that “price is a liar”; the overall liquidity issue present with most central banks, along with what he sees as a more »
Shares of bookseller Barnes and Noble (NYSE: BKS) jumped on news that activist hedge fund manager Barry Rosenstein’s Jana Partners initiated a 12% stake in the company. The news, which was announced in late April, caused Barnes and Noble’s share price to swell over 21% – clearly the market is behind the event driven fund, and with good reason.
Though Jana Partners lost 23.4% during the 2008 financial more »
John Burbank founded Passport Capital in 2000 and the fund has been very successful on the average. Burbank became well known for predicting the collapse of the U.S. housing market in 2005 and returning a stunning 219% in 2007. Unfortunately Burbank didn’t do well in 2011. Passport Capital’s flagship Passport Global Fund lost 18.4%. Burbank is very bearish about 2012 and investing accordingly.
At the end more »