What We're Reading ~ Hedge Fund Links 8/1/14

Lone Pine tells clients loss stemmed from sins of omission [II Alpha]

Profits soaring after disgrace at Cohen's hedge fund [Dealbook]

Politically connected hedge funds earn higher profits [ValueWalk]

Hedge funds bet big on overseas tax deals [WSJ]

On the Buffett versus hedge funds bet [FT Alphaville]

Manager says this 'mania' health stock will fall 90% [CNBC]

Private equity's most consistent performers [aiCIO]

East Coast Asset Management on An Ownership Mindset: Q2 Letter

Christopher Begg's East Coast Asset Management is out with its Q2 letter.  In it, Begg outlines the "value of an ownership mindset and how it plays an integral part in a compounding triumvirate with a good business and an effective operator."

Comparing investing to horse racing, he highlights how it's important to ask certain questions:

"If we bought this business in its entirety, could we put blinders on for five or ten years and feel secure in our investment?  Our level of comfort is simplified by the three key factors of business (horse), operational excellence (jockey), and the timelessness of an owner mindset (owner/trainer)."


Embedded below is East Coast's full Q2 letter:



For more from this firm, check out their previous letter on understanding the mispricing of an investment.

Corsair Capital's Thesis on SeaWorld: Q2 Letter

Jay Petschek and Steven Major's hedge fund firm recently sent out their second quarter letter and in it they include a pitch on SeaWorld (SEAS). 

They see the investment as one with limited downside and an upside of at least $40 per share over the next year.  Corsair feels the company has a great expansion opportunity ahead of it.  They also feel that Blackstone will eventually sell its remaining 20% ownership stake which will remove an overhang on the stock.

You can read Corsair's full investment thesis on SeaWorld embedded below:



For more recent hedge fund letters we've also posted up Greenlight Capital's letter and Third Point's Q2 letter.

Stan Druckenmiller's Presentation at Delivering Alpha Conference

A few weeks ago, we highlighted Stan Druckenmiller's comments at the Delivering Alpha Conference.  Now, CNBC has released the full video of his talk which is worth viewing.

Embedded below is Stan Druckenmiller's presentation at the Delivering Alpha conference:



For more from that event, be sure to also check out Lee Cooperman's stock picks and Larry Robbins' best ideas.

What We're Reading ~ Analytical Links 7/30/14

Bill Gates calls this "the best business book I've ever read" [John Brooks]

6 signs of a good investment process [Clear Eyes Investing]

Rethinking buybacks [CFO]

On Demand Media and Rightside [Buyside Notes]

Why media mergers limit more than competition [NYTimes]

Interview with Liberty Global's Mike Fries & John Malone [WSJ]

On the Liberty Broadband spinoff [Glenn Chan]

Online corporate finance and valuation classes [Aswath Damodaran]

Presentation on Visa: great company at fair price [ValueWalk]

A pitch on Future Bright Holdings [Red Corner]

Investors rush into student loans [CNN Money]

JANA Partners' Letter to PetSmart's Board

Barry Rosenstein's activist hedge fund firm JANA Partners has filed an amended 13D with the SEC regarding their position in PetSmart (PETM).  They currently own 9.8% of the company and are the largest shareholder.

Rosenstein's letter to the board indicates they want the company to begin a "full strategic review which includes engaging with potential buyers."  And if the company doesn't do so, JANA will seek to change up the board at the next annual meeting.

Embedded below is JANA's letter to PetSmart's board:



For more from this fund, head to Barry Rosenstein's thoughts on activist investing.

12 West Capital Discloses NutriSystem Stake

Joel Ramin's hedge fund firm 12 West Capital has filed a 13G with the SEC regarding shares of NutriSystem (NTRI).  Per the filing, the hedge fund now owns 5.3% of the company with over 1.5 million shares.

This is a newly disclosed equity stake for the firm and the filing was made due to activity in July 16th. 

You can view other recent portfolio activity from 12 West here.

Per Google Finance, NutriSystem is "a provider of a weight management system. The Company’s customers purchase monthly food packages containing a 28-day supply of breakfasts, lunches, dinners and desserts, which they supplement with dairy, fruit, salad, vegetables and low-glycemic carbohydrate items. Its customers order on an auto-delivery basis (Auto-Delivery), in which it sends a month’s food supply on an ongoing basis until notified by the customer to stop its shipments. Its product offerings also include a combination of its ready-to-go food and its fresh-frozen line of menu items. It sells its weight management program through a direct-to-consumer sales and distribution approach using the Internet and telephone."

Balyasny Asset Management Boosts NuStar Energy Stake

Dmitry Balyasny's hedge fund firm Balyasny Asset Management has filed a 13G with the SEC on NuStar Energy (NS).  Per the filing, Balyasny now owns 5.07% of the company with over 3.95 million shares.

This means their equity stake has increased by over 1.64 million shares since the end of the first quarter.  The filing was made due to activity on July 21st.

Per Google Finance, NuStar Energy is "engaged in the terminalling and storage of petroleum products, the transportation of petroleum products and anhydrous ammonia, and petroleum refining and marketing. NuStar Energy operates in three business segments: storage, transportation, and asphalt and fuels marketing. In February 2014, the Company announced that it has completed the transaction with an affiliate of Lindsay Goldberg LLC, a private investment firm, to divest all of its 50% voting interest in an asphalt joint venture that owns a refinery located in Paulsboro, New Jersey."