Activist investor Paul Singer is the founder, president and co-CEO of Elliott Management, which was established in 1977. Singer’s total net worth is valued at $5.5 billion, making its biggest leap from 2020 to 2021, per Forbes.
As of June 2022, Redbird Capital Partners entered into an agreement with Elliott Capital Advisors (part of Elliott Management) to acquire the beleaguered soccer club AC Milan.
The deal gives an enterprise value to the soccer club worth 1.2 billion euros and Elliott Capital Advisors will retain a minority financial interest in the club and seats on the board of directors.
Here are two high-yielding investments Paul Singer’s hedge fund is currently shorting.
iShares iBoxx $ High Yield Corporate Bond ETF HYG is offering a dividend yield of 5.27% or $3.76 per share annually, making monthly payments, with an inconsistent track record of increasing its dividends.
The iShares iBoxx $ High Yield Corporate Bond ETF tracks the investment results of an index composed of U.S. dollar-denominated, high-yield corporate bonds.
This is one of the most widely picked high-yield ETFs and has exposure to a broad range of U.S. high-yield corporate bonds.
Over the course of the second quarter, Singer increased his put position in the ETF by 8 million shares bringing the total position to 10 million shares, accounting for 8.5% of the portfolio.
Energy Select Sector SPDR Fund XLE is offering a dividend yield of 3.82% or $3.06 per share annually, through quarterly payments, with a decent track record of increasing its dividends once in the past year. The fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Energy Select Sector Index.
The index seeks to provide an effective representation of the energy sector of the S&P 500 Index.
Throughout the second quarter, Elliott Management purchased more than 5 million shares of Energy Select Sector SPDR Fund, bringing the total put position to over 10 million shares, accounting for 8.5% of the portfolio.
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