|Bid||0.0494 x 137500|
|Ask||0.0499 x 393700|
|Day's range||0.0492 - 0.0509|
|52-week range||0.0423 - 0.1248|
|Beta (5Y monthly)||0.77|
|PE ratio (TTM)||N/A|
|Earnings date||16 Apr 2018 - 20 Apr 2018|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||16 Mar 2017|
|1y target est||0.20|
(Bloomberg) -- Seth Klarman said the Federal Reserve is treating investors like children and is helping create bizarre market conditions that are unsupported by economic data.“Surreal doesn’t even begin to describe this moment,” Klarman said in a letter to investors reviewed by Bloomberg News. Investor “psychology is surprisingly ebullient even though business fundamentals are often dreadful,” he added.The culprit is the Fed, Klarman said in the 16-page letter.“Investors are being infantilized by the relentless Federal Reserve activity,” said Klarman, who runs hedge fund firm Baupost Group. “It’s as if the Fed considers them foolish children, unable to rationally set the prices of securities so it must intervene. When the market has a tantrum, the benevolent Fed has a soothing yet enabling response.”Going further, he said: “As with the 30-year-olds still living in their parents’ basements, we can only wonder whether the markets will ever be expected to make it on their own.”Klarman said “we were significant net sellers” as prices rallied in the second quarter. The hedge fund delivered a gain of about 10% in the three months ended June 30, and was down about 2% for the first half of the year, according to a person familiar with the matter.Baupost’s cash balance was 31% on June 30, up from 26% disclosed in April, the result of selling a recently purchased portfolio of mortgage-backed securities and one corporate debt holding, as well as net stock sales.A spokeswoman at Boston-based Baupost declined to comment.Here are some other highlights from the letter:Gains in the hedge fund were led by EBay Inc., Pacific Gas and Electric Co., Liberty Global Plc, ViacomCBS Inc., Steinhoff International Holdings NV and Translate Bio Inc.Covid-19 has caused “some adverse developments” in the firm’s public portfolio but those are likely to be temporary, he said.Investments in subrogation claims and equity of Pacific Gas were not affected by Covid-19 and substantial distribution is expected to be paid this month.The pandemic is challenging some of the firm’s private holdings including in real estate. While residential property developments in Miami, Denver, Lake Tahoe and southern Delaware are experiencing strong sales and traffic, a mixed use property outside of Cleveland is impaired because rents aren’t being paid, he said. Occupancy is also falling at a “major residential property” that wasn’t identified.Hedges cost the firm 1% of net asset value in the second quarter after contributing about 3% in the first quarter.(Updates with Baupost performance in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
South Africa's Steinhoff has proposed to pay around $1 billion to settle outstanding legal claims totalling over 9 billion euros ($10.5 billion) after a massive accounting fraud. Chief Executive Louis du Preez said Steinhoff had been working for 12 months to put together the settlement, and urged all claimants to support it. Steinhoff has said it would have to liquidate if it was required to pay the more than 90 separate legal claims in full.
The boss of Pepco Group, the owner of British discount retailer Poundland, said the coronavirus crisis has delayed the sale of the group by its troubled South African parent company Steinhoff <SNHJ.J>. Steinhoff, which has been battling the fallout from a 2017 accounting scandal, said last year it was evaluating a range of strategic options for Pepco Group, including a potential public listing, private equity sale or trade sale.