BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[M&A activity back on the rise thanks to foreign companies]]>http://www.bloggingstocks.com/2008/08/02/manda-activity-back-on-the-rise-thanks-to-foreign-companies/http://www.bloggingstocks.com/2008/08/02/manda-activity-back-on-the-rise-thanks-to-foreign-companies/http://www.bloggingstocks.com/2008/08/02/manda-activity-back-on-the-rise-thanks-to-foreign-companies/#commentsFiled under:

New data from Dealogic shows that July was the fifth straight month of growth in U.S. mergers and acquisitions activity -- and the highest total since a year ago.

But it's not quite as good as it looks. The data is skewed upward by foreign bids for American companies like Genentech (NYSE: DNA) and Anheuser-Busch (NYSE: BUD) and, according to the Associated Press, "the rise in M&A ... more likely reflects foreign companies taking advantage of the weak dollar than it does a loosening of credit."

But from an investors' perspective, the cause of the increase probably doesn't really matter. Deep value investors like Mohnish Pabrai have been struggling to post strong returns of late, in part because the private equity funds that could be relied on to buy undervalued companies a couple years ago have brought their U.S.-based activity to a hault.

But now the foreign companies and sovereign wealth funds are in the game and, from an investors' perspective, that's just as good -- whoever will buy undervalued public companies at a premium will boost returns. The low price-book, low price/earnings, contrarian investment strategies that haven't worked lately could be ready to start working again, just as they have historically.

M&A activity back on the rise thanks to foreign companies originally appeared on BloggingStocks on Sat, 02 Aug 2008 11:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AcquisitionsAnheuser-BuschBUDcontrarian investingDealogicDNAGenentechinthenewsMAMergersMohnish Pabraivalue investingSat, 02 Aug 2008 11:40:00 EST<![CDATA[Piggyback investing: Greenlight Capital]]>http://www.bloggingstocks.com/2007/07/16/piggyback-investing-greenlight-capital/http://www.bloggingstocks.com/2007/07/16/piggyback-investing-greenlight-capital/http://www.bloggingstocks.com/2007/07/16/piggyback-investing-greenlight-capital/#commentsFiled under: , ,

Greenlight Capital is a very interesting and successful hedge fund ran by value investing superstar David Einhorn. The fund has annualized returns at 27% per year for the last 10 years. Einhorn's investment style is especially interesting because he is not afraid to make large, focused bets and because he specializes in special situations, specifically spinoffs.

Focus investing is a concept which has recently seen a resurgence due to the success of Mohnish Pabrai and many other focused hedge funds such as Greenlight. As I recently covered here, spinoff investing is a compelling method of investing which I consider to allow for "structural undervaluation."

Interestingly, Einhorn isn't a one horse pony when it comes to investing. He's also a very talented poker player. In fact, he came in 18th (of 8,773) in the 2006 World Series of Poker for which he took home almost $660,000. This is pertinent because many people believe there is a correlation between excelling in trading/investing and doing well in poker.

Continue reading Piggyback investing: Greenlight Capital

Piggyback investing: Greenlight Capital originally appeared on BloggingStocks on Mon, 16 Jul 2007 16:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>David EinhornDavidEinhornGEGNWGreenlight CapitalGreenlightCapitalHOVLXMDCMohnish PabraiMohnishPabraiMSFTMon, 16 Jul 2007 16:40:00 EST