By Corina Pons, Luc Cohen and Mayela Armas

CARACAS (Reuters) – Three small investment funds have started buying defaulted Venezuelan bonds as hopes of a change of government are fading and the South American nation is proposing a restructuring, according to sources and documents.

Canaima Capital Management, headquartered on the English Channel island of Guernsey, Uruguay-based Copernico and Cayman Islands-based Altana have bought heavily discounted bonds with face value of hundreds of millions of dollars, according to eight finance industry sources in Caracas, New York, Miami, Madrid and London.

The funds appear to be part of a small group of contrarian investors bucking the broader market consensus, which maintains there is little value in Venezuelan bonds that have not been serviced in nearly three years amid an economic crisis.

The funds believe it is time to act and to evaluate legal options instead of waiting for a friendly negotiation with allies of Juan Guaido, who is recognized by more than 50 countries as Venezuela’s interim president, even though he still hasn’t taken power.

The funds argue investors may be unable to recover missed interest payment after 2020 due to a statute of limitations clause in the bonds’ covenants – an assertion flatly denied by the main committee for Venezuela creditors.

Nonetheless, the efforts to amplify these concerns has fueled nervousness and increased the willingness of bondholders to sell their notes, according to four Venezuelan finance industry sources.

Altana, which two sources said was offering to buy bonds this year, has already taken legal action against Venezuela to try to force payment. In an Oct. 8 complaint filed with the United States District Court for the Southern District of New York, the fund demanded payment from Venezuela on $108 million of defaulted bonds.

That came after investment funds Casa Express and

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Shares of department store Dillard’s are surging close to 30% on Monday after a regulatory filing revealed that Ted Weschler, one of the highest ranking money managers at Warren Buffett’s storied conglomerate and investment vehicle, Berkshire Hathaway, owns a nearly 6% stake.

Key Facts

Released just minutes after the market-close on Friday, a filing with the Securities and Exchange Commission revealed that Ted Weschler, a Berkshire money manager who many believe could be the firm’s next chief investment officer, acquired shares in late September that pushed his personal holdings past the 5% ownership threshold required for public disclosure. 

Weschler now owns 1,081,000 shares of Little Rock, Ark.-based Dillard’s–equal to roughly 5.89% of the firm’s shares outstanding, the filing notes. 

Shares of Dillard’s soared as much as 40% on Monday, pushing the firm’s market capitalization well past $1 billion, and settling at about $55 per share as of 3 p.m. EDT, about 30% higher than Friday’s closing prices.

Dillard’s stock is still down nearly 22% for the year, but the retailer is now doing much better than its peers: The S&P 500 Department Stores Index is down about 54% in 2020.

Public filings show that Weschler also has substantial personal stakes in healthcare company DaVita and Liberty Media Corp, which owns stakes in SiriusXM, the Atlanta Braves and Formula One; both are firms in which Berkshire also has large stakes.

Berkshire has no reported stake in Dillard’s.

Key Background

Like other department stores this year, Dillard’s has been slammed by the coronavirus pandemic. Total sales in the firm’s most recent quarter dropped by 35% year-over-year to $945 million, which was in line with expectations, but the firm’s loss in the quarter, of 37 cents per share, was more than 90% better than Wall Street expected. Wedbush analysts

Launching an innovative crowdfunding platform giving individuals the ability to be part of Nitya’s deals.

HOUSTON, Oct. 10, 2020 /PRNewswire/ — Nitya Capital LLC announces the release of a revolutionary crowdfunding platform, providing investors the power to attain interest in Nitya’s deals, never before open to the public.

Real Estate Investment Redefined
Real Estate Investment Redefined

Invest NOW in Real Estate Crowdfunding platform WITHOUT ANY FEES.

Housed within Nitya’s website, the crowdfunding platform provides a full-scale range of wealth fund options across asset classes, including multifamily and office properties. The crowdfunding platform is uniquely positioned to provide investors with a better offer by eliminating additional fees, typically passed along to investors using third-party crowdfunding models.

“This is a game changer for a lot of investors. We’ve built a platform that enhances the way people can invest in real estate by taking away the extra fees and giving them access to our ventures,” said Swapnil Agarwal, CEO and founder, Nitya Capital. “We’re making the deals extremely competitive and opening them up to the public, allowing new investors to be part of Nitya’s movement.”

Nitya Capital’s historical performance includes an average deal of 2.7 years with a realized average net IRR of 21%. Nitya has approximately $2.5 billion in assets under management. Opportunities are open to accredited investors and start at $25,000.

“We’ve found there is a significant market for people looking to diversify their portfolio, as an alternative to typical stock and bond investments,” said Mehul Chavada, Head of Investments and Business Development, Nitya Capital. “We’ve been able to beat investor expectations in past deals. Since we used to only work with known investors, this kind of public opportunity has never been on the table before.”

For more on the crowdfunding platform, go to https://nityacapital.com/deals/.

About Nitya Capital
Nitya Capital LLC

TOKYO (Reuters) – Japan’s core machinery orders likely fell in August, a Reuters poll found on Friday, reversing the previous month’s gain as the coronavirus pandemic weighed on business investment.

Worsening earnings have discouraged businesses from investing, with the world third-largest economy only just emerging from its worst post war contraction.

Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, likely slipped 1.0% in August from the previous month, the poll of 17 economists showed. The fall would follow a 6.3% gain in July.

From a year earlier, core orders, which exclude those for ships and electrical utilities, are projected to have fallen 15.6% in August following a 16.2% drop in July.

“A rapid deterioration in corporate earnings and uncertainty over the outlook will prompt firms to refrain from carrying out business investment,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.

“There may be IT-related investment by firms going ahead, but overall business investment is expected to be weak.”

The Cabinet Office will release the machinery orders data at 8:50 a.m. on Monday, Oct. 12 Tokyo time (2350 GMT Oct. 11).

The Bank of Japan’s corporate goods price index (CGPI), which measures the prices companies charge each other for goods and services, likely fell 0.5% in September from a year earlier, the poll found, reflecting weak domestic demand.

(Reporting by Kaori Kaneko; Editing by Sam Holmes)

Copyright 2020 Thomson Reuters.

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  • Morgan Stanley will buy asset manager Eaton Vance in a deal valued at $7 billion, the firms said on Thursday, in the latest sign of widespread consolidation in the money-management industry. 
  • The deal beefs up Morgan Stanley’s position in customizable fund offerings and sustainable investments through Eaton Vance’s affiliates, industry analysts and consultants said in interviews.
  • One East Coast-based Morgan Stanley financial advisor told us that he was most interested in the fixed-income capabilities Eaton Vance could bring to the firm, along with its Parametric mutual funds. 
  • Morgan Stanley’s move underlines its own transformation and the realities of pressured mid-sized asset managers that need size to survive. 
  • On a conference call to discuss the deal with analysts on Thursday morning, CEO James Gorman said the tie-up fit into Morgan Stanley’s shift to “more balance sheet-light, more durable businesses.”
  • Visit Business Insider’s homepage for more stories.

Sustainable investing, big stable businesses, utter size, and tailored products for investors: Morgan Stanley’s move to buy Eaton Vance at a premium is a deal made for modern Wall Street.

The New York investment bank said Thursday it would acquire the Boston-based investment manager, which oversees some $500 billion in assets, and its affiliates in a deal worth $7 billion in cash and stock.

Coming just six days after Morgan Stanley closed on its all-stock E-Trade acquisition, the deal highlights the bank’s transformation toward more stable operations from once-core sales and trading under Chief Executive James Gorman within an industry that has shifted significantly since he took the reins a decade ago.  

The tie-up would create a $1.2 trillion asset management behemoth alongside Morgan Stanley Wealth Management, one of the largest wealth managers in the world with 15,400 financial advisors and nearly $2.7 trillion in client assets as of the end of June.

Eaton Vance