RPT-Hedge fund Elliott discloses bigger Juniper stake, tight-lipped on Argentina
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By Svea Herbst-Bayliss
BOSTON, July 29 (Reuters) - Hedge fund Elliott Management told investors that it added to its stake in Juniper Networks last quarter and sees opportunities in real estate securities in Europe, but it said little about two positions making headlines - Argentina and EMC Corp.
During the first half of 2014, the Elliott Associates portfolio gained 4.6 percent while the Elliott International Limited fund rose 4.1 percent, the $25 billion firm, which is run by investor Paul Singer, wrote in a letter dated July 28, a copy of which was obtained by Reuters on Tuesday.
Writing about Juniper Networks, the firm said: "We added to our position during the quarter, as we continue to believe that Juniper has numerous pathways for value maximization." He did not say how large the stake is.
In the letter, the firm said it sees opportunities in non-performing loans, especially in Italy, in part because the "Bank of Italy has been requiring banks to improve their NPL provisioning levels." Elliott also cited opportunities in European real estate markets, particularly in the UK and Germany, even as more competitors are piling in and making the broader market more competitive.
Elliott, which has been pursuing activist strategies at some companies, confirmed in the letter that it owns a stake in storage systems company EMC, which is the majority owner of VMware Inc. Earlier this month speculation mounted about EMC's future and that Elliott, which people close to the firm said had taken a $1 billion stake, might push for a breakup. The firm did not say how large its stake is.
In the letter, the firm simply said: "Elliott is looking forward to a dialogue with EMC to discuss ways to create additional value for shareholders." It did not shed any light on which options it might pursue or whether suitors may be waiting in the wings.
Elliott, whose NML Capital Ltd affiliate is one of the lead holdout creditors of Argentina, was similarly tight-lipped in discussing its long-running battle with Argentina. Elliott had refused debt swaps after the country defaulted more than a decade ago and remains a holdout for full payment. In its letter, dated July 28, it said the country must now decide whether to default on its external debt. Continuación...