• Hedge fund billionaire Dan Loeb urged Disney to suspend its dividend payments and instead use those funds to grow Disney+ streaming. 
  • The founder of Third Point wrote a letter on Wednesday to CEO Bob Chapek saying that reallocating this dividend money could double the company’s streaming services budget for original content, Bloomberg reported. 
  • Loeb’s push to build out streaming comes as in-person movie theaters continue to suffer throughout the pandemic.
  • “Every Hollywood executive has been able to enjoy first-run films in the comfort of their home theaters for years,” he said. “We urge you to democratize this experience.”

Investor Dan Loeb urged Disney CEO Bob Chapek to end the company’s annual $3 billion dividend payments and redirect those funds to building up Disney+ in a Wednesday letter.

The founder of Third Point said that reallocating dividend money to Disney+ could double the streaming service’s budget for original content, bring in additional subscribers, lower churn, and boost pricing power, according to the letter obtained by Bloomberg. His push for streaming comes as in-person movie theaters continue to suffer throughout the pandemic.

“Every Hollywood executive has been able to enjoy first-run films in the comfort of their home theaters for years,” he said. “We urge you to democratize this experience.”

Read more: A $2.5 billion investment chief highlights the stock-market sectors poised to benefit the most if stimulus is passed after the election — and says Trump ending negotiations doesn’t threaten the economic recovery

In August, Loeb initiated a long position in Disney during the second quarter and said in a quarterly letter that streaming is Disney’s “biggest market opportunity ever with potentially $500 billion of revenue.” 

Shares of Disney rose as much as 2% during Wednesday trading. The media giant is down nearly 15% year-to-date but has gained over

Written by Nick Ackerman, co-produced by Stanford Chemist

The Calamos Strategic Total Return Fund (CSQ) offers investors an attractive blend of convertible exposure and common equity exposure. Equities dominate the largest allocation of the fund’s portfolio, led by the tech sector. Though the allocation to tech isn’t egregiously large overall. In fact, the allocation of tech is smaller than that of the S&P 500. The strong returns since the GFC have also given investors a few distribution boosts since then, with the last dividend increase happening earlier this year.

CSQ seeks “total return through a combination of capital appreciation and current income.” Its investment strategy is quite simple: “investing in a diversified portfolio of equities, convertible securities and high yield corporate bonds.”

Essentially, the investment managers can posture the portfolio in whatever particular composition they deem the most attractive. That can result in some superior returns if they get it right. While the opposite is just as true, the current management team has been able to deliver more than reasonable returns. Calamos also has experience in the convertible space, with its line-up of CEFs offering exposure to these investment instruments. That being said, CSQ is one of their funds that actually has the least exposure to this space.

Convertible stock can be beneficial for some investors, as they have features of both equities and fixed-income. This means they can also be potentially more volatile than regular fixed-income instruments, as the conversion feature results in movement based on the equity of a company. However, that also potentially allows for upside when a conversion takes place – all the while collecting a fixed interest rate on their holding. Typically, retail investors do not get exposure to these investments, as they aren’t traded on exchanges. They are level 2 assets though, so liquidity



a group of people walking down the street: Ruby Tuesday's restaurant in Times Square in 2016. Mary Altaffer/AP Photo


© Mary Altaffer/AP Photo
Ruby Tuesday’s restaurant in Times Square in 2016. Mary Altaffer/AP Photo

  • In August, retiree Mark Potter suddenly stopped receiving his pension payments from Ruby Tuesday.
  • Documents show that Ruby Tuesday advised its trustee, Regions Bank, to stop paying pensions to at least 112 retirees on July 21, months before declaring insolvency on September 2.
  • But the agreement between Ruby Tuesday and Regions stated the chain had to notify the bank of its insolvency before it could cease pension payments.
  • On September 28, Regions filed a lawsuit against Ruby Tuesday, asking a court to determine whether the chain’s actions were legal.
  • In the meantime, Potter and the other retirees are stuck in pension purgatory, with no idea of when or if their payments will resume.
  • Visit Business Insider’s homepage for more stories.

Mark Potter did everything he was supposed to.

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After 28 years working his way up the ladder at Morrison’s Cafeterias to become a district manager, Potter retired in 1999 with the knowledge that his pension plan was a lifelong one.

Morrison’s Cafeterias had acquired Ruby Tuesday in 1982 before splitting into three companies: Ruby Tuesday, Morrison Healthcare, and Morrison’s Fresh Cooking — a cafeteria company that was later bought by rival chain Piccadilly Restaurants. When Morrison’s split in 1996, the three entities entered a legal agreement to divide their retirees’ pensions, James Holland, a former Morrison’s Cafeterias vice president, told Business Insider.

Holland also explained that if one company filed for bankruptcy, the other companies assume responsibility for its portion of the pension payments. For example, when Piccadilly filed for bankruptcy in 2004, Ruby Tuesday and Morrison’s Healthcare split Piccadilly’s share of the payments.

In August, Potter’s pension payments from Ruby Tuesday suddenly stopped coming. He called Ruby Tuesday repeatedly to ask why,

In a story posted Sunday afternoon, the Times said it had obtained tax-return data for Trump and his businesses covering much of the last two decades. Trump has refused to release his tax returns — making him the only president in recent history to do so — and he went to the Supreme Court earlier this year to stop Congress and the Manhattan District Attorney from accessing them.

The Times story shows what Trump would not: that the business empire he brags about has struggled, with keystone properties like the president’s Doral resort and his D.C. hotel steadily losing money. And that, in the next few years, Trump will be required to pay about $421 million in loans and other debts.

The Times story said Trump is still fighting the IRS over a $72.9 million tax refund that he was granted in 2010. The IRS is trying to determine if that refund, granted after Trump claimed extensive business losses, was legitimate: If Trump loses that fight, the paper said, he could have to pay more than $100 million.

In a news briefing at the White House on Sunday, Trump called the Times story “fake news,” but did not take issue with any specific details.

“I’ve paid a lot, and I paid a lot in state income taxes, too,” Trump replied. “New York state charges a lot. And I’ve paid a lot of money in state.” Trump also promised to release his tax returns after his IRS audit is completed — a promise he has made since he first ran for office, without ever releasing any information.

President Trump still owns his business, though he says he has given day-to-day control to his eldest sons, Eric and Donald Jr.

Alan Garten, a lawyer for the Trump Organization, said in a statement