Twin Capital Management CEO David Simon Provides Market Predictions and Trends for 2014

Share Article

David Simon, CEO of Twin Capital Management LLC, issued his annual market outlook and the top trends he expects will take place in the coming year.

Twin Capital Management LLC

David Simon, CEO of Twin Capital Management LLC, an event-driven hedge fund, today issued his annual market outlook and the top trends he expects will take place in the coming year. This is the third year that Mr. Simon has released five predictions and trends. These predictions are based on more than 26 years of experience as an investor.

Mr. Simon’s predictions for 2014 include:

  • Anadarko Petroleum Corp. (“Anadarko”) is forced to settle their Tronox litigation due to its nuisance factor but settles for an amount of less than $3 billion and the stock rallies sharply.
  • Time Warner Cable Inc. will not be an independent company by the end of the first quarter of 2015 as Charter Communications Inc. (“Charter”) buys them and Comcast Corporation gets what they want from Charter to prevent a competing bid.
  • Investors realize that the European recovery is all smoke and mirrors as you cannot teach an old dog new tricks. Greece and Italy will not significantly change the way they collect taxes and Spain will have a hard time solving their unemployment problem. Because of these and other factors the U.S. Dollar (“USD”) strengthens versus the Euro as the Euro hits 1.23 versus the USD.
  • Reports of Puerto Rico’s demise are greatly exaggerated. Puerto Rico should do a bond offering by the first quarter of this year, and if economic conditions do not improve then Congress should create business incentives to do business there, to avoid a disruption in the municipal bond market, which will strengthen their economy.
  • The housing recovery is not as stable as people think and if the Federal Reserve keeps tapering and long-term rates rise you could see housing slow, which could in turn slow the growth in our economy to a 1% pace.

"In 2014, my predictions aside, as the U.S. economy gains strength, CEOs gain more confidence, and activists continue to push corporations to utilize their large cash balances, we should also see the continuation of a positive trend in the event and deal environment,” said Mr. Simon.

*Disclosure: Twin Capital Management LLC has positions in Anadarko, Charter, and Time Warner Cable Inc.

About Twin Capital Management:

Twin Capital Management LLC is an alternative investment management firm founded by David Simon in 1988. The firm manages equity-based, event-driven strategies with the goal of consistently producing superior, risk-adjusted, and uncorrelated returns. Twin Capital Management’s investment process is uniquely designed to identify, analyze and maximize the upside of opportunities, while minimizing risk.

Past performance is not indicative of future results. The information contained in this press release does not constitute an offer to sell or the solicitation of an offer to purchase interests in any fund managed by Twin Securities, Inc. Such an offer or solicitation can only be made pursuant to a final offering memorandum, only to investors who meet certain eligibility requirements, and only in those jurisdictions where permitted by law. An investment in a private fund is not appropriate or suitable for all investors and involves the risk of loss, as well as other risks more fully described in the offering memoranda. Twin Securities, Inc. is a registered investment adviser. More information about the adviser can be found in its ADV Part 2, which is available upon request by calling 212-687-6834.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Kevin Gahwyler
Follow us on