Morning Hedge Fund, Private Equity and Market News

Apr 6 2017 | 8:47am ET

The Dow Jones industrial average projected a 21-point gain ahead of President Donald Trump’s meeting with Chinese President Xi Jinping. Markets will look to rebound after minutes from the Federal Reserve’s March meeting showed increased desire by the central bank scale back its $4.5 trillion balance sheet Wednesday.

Here's what you need to know on Apr. 6, 2017. 

Today’s Institutional Watch List

President Donald Trump is expected to discuss bilateral trade, North Korea’s nuclear program and the South China Sea with Chinese President Xi Jinping over the next two days. But don’t sleep on a conversation about the U.S. plan to install a missile defense system in South Korea.

According to the Wall Street Journal, China is so vehemently opposed to the U.S. missile system that it has dampened deal making between Chinese state-owned and private equity firms and companies in South Korea. But is China using the missile system as a reason for capital controls to prevent an outflow of money in order to bolster the yuan? Here’s more on the story.

BlackRock (BLK) CEO Larry Fink appeared on CNBC this morning to discuss the Trump agenda and to provide a dismal projection in first-quarter growth. Fink predicted that U.S. GDP growth registered at less than 1.5 percent over the first three months of 2017.

Fink said that growth has been dampened by Trump’s immigration policy and Congressional gridlock over healthcare, tax reform, and the rest of the president’s agenda. Fink also said that the stock market would experience “setbacks” if Trump’s administration is unable to enact deregulation and broad tax reform.

Shares of Alcobra Ltd (ADHD) are back in focus after the firm turned down a request from Brosh Capital to hold an “Extraordinary General Meeting of Shareholders” for a vote on replacing the firm’s board of directors. In a letter to the activist fund, Alcobra Chairman Howard Rosen said that it welcomes shareholder input on the firm’s strategic path.

However, Rosen said that Brosh had provided “legally insufficient requests and factually baseless assertions" in a letter last month. Brosh says that changes at the board level would bolster shareholder value. 

In deal news, Seven & I Holdings (SVNDY), the Japanese conglomerate that owns 7-Eleven, is purchasing part of Sunoco's (SUN) gas station and convenience store business. The $3.3 billion deal comes a year after the firm got into a boardroom battle with Third Point’s Daniel Loeb that led to the resignation of CEO and chairman Toshifumi Suzuki.

Loeb had been pushing for the firm to focus on its dominance in the convenience story space. Here is more on the Sunoco sale.

Trucking giant Schneider National announced it had priced its initial public offering (IPO) at $19.00 per share. That figure falls within the projected range of its IPO expectations and sets a value of the company at around $3.3 billion. Schneider is the first trucking company to go public in seven years, according to Dealogic. 

Finally, who wants to buy the company that has become the easiest way to harvest competitive intelligence on rival employees since the history of capitalism? According to reports, GTCR is thinking about purchasing CareerBuilder for more than $1 billion. CareerBuilder is currently owned by Tegna, the Tribune Media Company, and the McClatchy Company. The deal comes not long after Monster Worldwide announced plans to sell itself to recruiting giant Randstad for $429 million.

Thursday Morning Reading List


Check back for more hedge fund, private equity and market news throughout the day and be sure to read Thursday's edition of The Daily Alpha. 

Check out yesterday's edition right here – Real Talk on Ray Dalio, Hedge Fund Oil Bets, Donald Trump and the Hacienda Hedge





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