Monday, 15 Sep 2014 | 5:46 PM ET

Ackman to use dual share class for European IPO

Posted By: Kate Kelly
Bill Ackman
Kerima Greene | CNBC
Bill Ackman

Hedge fund activist Bill Ackman has never been shy about using his shareholder rights to demand change from company management teams. But as CEO of his own soon-to-be public company, he'll use a dual share-class structure that has traditionally been considered unfriendly to investors—albeit with a twist.

As part of the planned offering of Ackman's foreign offshoot, Pershing Square Holdings, on the Euronext exchange in Amsterdam in October, the company has created two sets of shares, say people familiar with the company's prospectus: One that will be sold to the public in Europe, and a second that will be controlled by a nonprofit organization in Canada.

»Read more
  Tuesday, 16 Sep 2014 | 8:00 AM ET

‘Monumental failure’ of today's colleges: Survey

Posted By: Stephanie Landsman

Colleges not preparing students for the workforce has been the perception for a long time—but now there's data to back that up.

A Gallup-Purdue University study describes a huge disconnect between what college presidents think students need to launch successful postgraduate careers and what the schools are actually delivering.

The survey, which involved more than 30,000 students, tackled topics such as internship experience, availability of mentors, enthusiastic teachers, special projects and extracurricular activities.

The biggest sticking point: Internships.

»Read more
  Monday, 15 Sep 2014 | 12:10 PM ET

One place you won't get Alibaba: The big ETFs

Posted By: Jeff Cox
Andrew Harrer | Bloomberg | Getty Images

Alibaba's blockbuster debut as a publicly traded stock has been everywhere leading up to Thursday's rollout. One place it won't be, though, is in a lot of investor portfolios.

That's because the e-commerce giant won't be included in the biggest exchange-traded funds that normally would list a company like Alibaba.

Because it is incorporated in the Cayman Islands and will only have American depositary receipts listed in the U.S., it will be ineligible for big indexes like the ones run by MSCI and FTSE.

While its exclusion from widely followed ETFs is unlikely to deter investor enthusiasm for Alibaba once the initial public offering hits Friday, it could have longer-term ramifications.

»Read more
  Friday, 12 Sep 2014 | 1:14 PM ET

This reg change would be huge for small banks

Posted By: Jeff Cox

Life is about to get more difficult for the nation's big banks but possibly a whole lot easier for the small ones.

As Congress enacts stricter regulations for large financial institutions and ponders future measures, there's growing anticipation that it is moving closer to steps that would exempt those not considered systemically important from the tough new oversight provisions.

On the table now is a provision that would increase the amount of assets a bank would need to hold before being considered a systemically important financial institution, or SIFI. A proposal in front of the Senate Banking Committee would raise that ceiling from $50 billion to $250 billion, and one analyst believes that despite ever-present gridlock in Washington, the SIFI threshold move likely will get through in the months ahead.

"We remain optimistic that the Senate Banking Committee will advance bank SIFI asset threshold legislation no matter the outcome of the midterm elections as there has been a clear divergence in the view of the banking industry on Capitol Hill between the money centers and all other banks," Compass Point Research & Trading analysts Kevin Barker, Isaac Boltansky and Jason Stewart said in a note to clients.

»Read more
  Thursday, 11 Sep 2014 | 2:58 PM ET

Third Point raises $2.5 billion in two weeks

Posted By: Lawrence Delevingne
Daniel Loeb
Simon Dawson | Bloomberg | Getty Images
Daniel Loeb

Investors want more of activist hedge fund manager Dan Loeb, and they're putting up lots of cash to prove it.

Loeb's Third Point pulled in $2.5 billion in fresh cash from investors in just two weeks, according to a person familiar with the situation.

A spokesman for Third Point declined to comment. The news was first reported by The Wall Street Journal.

»Read more
  Thursday, 11 Sep 2014 | 12:31 PM ET

Alibaba gets interest from Tepper, Loeb, Cooperman

Posted By: Lawrence Delevingne

Hedge funds appear to be salivating over Alibaba.

The Chinese e-commerce company's initial public offering is set for Sept. 19 and is already drawing significant attention from the so-called smart money.

Billionaire investor Leon Cooperman is one of Alibaba's fans.

Read MoreAlibaba taking the world by storm, but what is it?

"We like what we see so far and we are highly impressed with Jack Ma and his management team," Cooperman, founder of $10.4 billion hedge fund Omega Advisors, said in an email. He added that he had met with Alibaba executives and plans to invest in the stock once it goes public.

Three other major hedge fund investors who have shown interest in the IPO are Dan Loeb of Third Point, David Tepper of Appaloosa Management and Dan Benton of Andor Capital Management. All three were among the roughly 800 people—300 more than expected—who attended Alibaba's first road show presentation Monday at the Waldorf Astoria hotel in Manhattan, according to witnesses.

Spokesman for their respective firms declined to comment or didn't respond to requests on if the men planned to invest in the company. Loeb has previously invested in Yahoo and once called "hidden jewel" Alibaba "central to our investment thesis" in Yahoo.

»Read more
  Thursday, 11 Sep 2014 | 1:51 PM ET

'Pathetic': Good luck getting in on Alibaba IPO

Posted By: Jeff Cox
Brent Lewin | Bloomberg | Getty Images

Initial public offerings are like a big, exclusive party that all investors are invited to but only a few can actually attend.

Expect more of the same from Alibaba, the hotly anticipated tech IPO—the largest ever—that already is fully subscribed but likely to be mostly out of the reach for most of the retail crowd, at least initially.

"It's totally pathetic," said Michael Cohn, chief market strategist at Atlantis Asset Management. "The public's just not allowed to participate. ...The large fund people that manage money for, just say, the Fidelitys, the Vanguards of the world and the hedge funds, are the ones that get the largest allocation."

Cohn figures the retail side that he represents may be able to get a 25 percent to 30 percent fill on their orders, but that probably will be the limit.

"The question is, do you really want any?" he said. "This is so big, it's hard to wrap your head around it."

»Read more
  Wednesday, 10 Sep 2014 | 12:21 PM ET

This bull says, 'Let the good times roll' in 2015

Posted By: Jeff Cox

One of Wall Street's biggest bulls has just upped the ante for 2015.

Technical strategists at Piper Jaffray, which correctly foresaw much of this year's market upside, including the S&P 500's eclipse of the 2,000 mark, said the bull has more in store.

In a lengthy pair of reports sent to clients Wednesday, the firm held to its ambitious year-end target of 2,100—a nearly 6 percent gain from here—but also predicted the stock market index would hit 2,350 by the end of 2015, a 17 percent increase from the current level. That represents the highest target of any Wall Street firm and is part of a general movement to revise market hopes upward.

"We suspect that low interest rates, low inflation and dovish Fed policy will continue to underpin this equity bull market for the foreseeable future," managing director Craig W. Johnson and others said in one report. "Given there are 25 percent fewer investable stocks today than there were in the early 2000s, we think the market is primed to go higher when asset allocation shifts toward equities; this should underpin this bull market for the foreseeable future."

»Read more
  Thursday, 11 Sep 2014 | 1:18 PM ET

GE's hotshot Oil & Gas chief peers into future

Posted By: Mary Thompson

Lorenzo Simonelli is 41, slim, nice looking and well spoken. He also possesses an impressive resume.

Last October he was tapped to run General Electric's fastest-growing business, GE Oil & Gas, and prior to that, he ran GE Transportation.

Simonelli will be closely watched both inside and outside of the conglomerate. He is often mentioned as a potential candidate to succeed his boss, Jeff Immelt, who became CEO of the company in 2001 at the tender age of 44.

»Read more
  Wednesday, 10 Sep 2014 | 11:03 AM ET

Throw away the key! Pols want bad bankers jailed

Posted By: CNBC.com staff
Sen. Elizabeth Warren
Getty Images
Sen. Elizabeth Warren

If two senators get their way, executives—and not just the banks they run—will face punishment for bad behavior in the future.

What's more, the sentiment is shared across party lines, with Sens. Elizabeth Warren , D-Mass., and Richard Shelby, R-Ala., both expressing concern that while banks have faced billions in penalties for actions that precipitated the financial crisis, no individual CEOs have been held responsible.

"No corporation can break the law unless the individual within that corporation broke the law," Warren said during a committee hearing Tuesday, according to an account in The Hill. "Not a single senior executive at these banks (has) been criminally prosecuted."

»Read more

About NetNet

  • NetNet is where you'll find the low-down and the high jinks of Wall Street. It's the place for insider stories, trader gossip, and tales of the foibles of the moneyed crowd and the culture of finance.Wall Street news and commentary served fresh all day long.


  • Jeff Cox is finance editor for CNBC.com.

  • Lawrence Develingne

    Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.

  • Stephanie Landsman is one of the producers of "Fast Money."

NetNet TV

Wall Street