After reading Shocking The Street, BlackRock CEO Larry Fink recently made a colossal bet on Endo. BlackRock is one of the largest asset managers in the world with $6.3 trillion under management. It now has 14.4% equity stake in Endo – making it the company’s largest shareholder. In the Shock Exchange’s opinion, this is a huge endorsement for Endo and Shocking The Street. It could be only a matter of time before other hedge managers rush into the stock.
According to the critically acclaimed Shock Exchange: How Inner-City Kids From Brooklyn Predicted the Great Recession and the Pain Ahead, hedge funds tend to have a herd mentality, and they are also known for doing “club deals.” More public relations and buzz from the hedge fund community could send Endo skyrocketing. The question remains, “Who will be the next hedge fund to rush in?” Will it be Third Point‘s Dan Loeb? Legendary investor Carl Icahn, or both? Stay tuned. Gordon Gekko would have devoured this stock already.
#6 Dan Loeb
We predict Third Point’s Dan Loeb Could be next to pile into Endo. I assumed after the Federal tamped down quantitative easing that activist investing would have died down. Hedge funds took major losses in Valeant, Allergan, and the failed merger between Halliburton and Baker Hughes, which seemed to confirm my thesis. Nonetheless, Dan Loeb of Third Point has remained a very busy activist investor.
In 2017 Loeb took a major stake in Dover Corporation with the hopes it would spin off its energy segment to a major industry player. I predicted the notion was silly given the dearth of buyers interested in a mid-sized player in a North America land drilling market that had likely peaked. Loeb’s PR stunt and Trump’s tax cuts helped spike Dover’s shares, but I doubt anything will come of Loeb’s prospecting.
Loeb has also tried to shake things up at Nestle and Campbell’s Soup – this likely shows he is completely out of ideas. On the other hand, Endo has legs and Loeb is probably salivating over the chance for a 4-bagger. He’ll be next to pile into Endo … guaranteed.
