Hedge Funds and Investing

Contents Market Snapshot Stock Profile Hedge Fund News Hedge Fund Profile Economic Calender


Volume 1 Issue 2

Market Snapshot

The Dow Jones Industrial Average Index has been in a bullish mode for the past few weeks. The slow stochastic at 78.729 is high meaning that it could be overbought or bullish. The MACD is positive and rising whilst the RSI has stabilised at its current level. The CBOE Volatility Index has remained low at 17.92 giving the markets room to further move upwards. The US dollar looks likely to weaken over the next few weeks. If it does so, the Dow and the stocks generally may continue on its upward trend.

Stock Profile Schulman Inc (SHLM)

Produced by HU. This issue is available for distribution with proper attribution. This magazine is for educational and informational purposes only. Please seek advice from investment professional before making an investment decision.


Schulman provides plastic compounds and resins to consumer products, industrial, automotive, and packaging markets in North America, Europe, and Asia. It offers color and additive concentrates that gives plastic a certain color and/or physical features to manufacturers of plastic products, such as film for packaging, household goods, toys, automotive parts, mechanical goods, and other plastic items. The company also provides engineered compounds, which are products designed to maintain characteristics, such as chemical resistance, electrical conductivity, heat resistance, and/or high strength-to-weight ratios. Furthermore, A. Schulman offers various polypropylene and polyethylene resins and compounds, which are used for interior trim, fascias, and bumper covers in automotive applications; toys, small appliances, sporting goods, and agricultural and watercraft products in roto-molding applications; and office supplies in industrial/commercial applications. In addition, it involves in the formulation of polyvinyl chloride (PVC) compounds and elastomers to introduce various product attributes, including weatherability, consistency, ease of processing, material flexibility, and high-gloss or low-gloss finish. The company offers thermoplastic PVC compounds, which are used for the manufacture of automotive, furniture, architectural, and consumer products, as well as Sunprene, a compound that serve as a replacement for rubber and other thermoplastic elastomers in automotive applications. Additionally, A. Schulman provides tolling services, as well as certain materials, such as additives or packaging primarily in Europe. The company was founded in 1928 and is headquartered in Akron, Ohio. SHLM was upgraded to a buy in 2009:

Date 15-Jun-09 KeyBanc Capital Mkts

Research Firm

Action Upgrade

From Hold

To Buy

These are the performance estimates given by analysts for SHLM:
Current Qtr Earnings Estimate Feb-10 Avg. Estimate No. of Analysts Low Estimate High Estimate Year Ago EPS 0.23 4 0.19 0.32 -0.26 0.44 4 0.36 0.53 0.36 May-10 1.84 3 1.68 1.94 0.64 Aug-10 1.99 4 1.73 2.20 1.84 Aug-11 Next Qtr Current Year Next Year

Current Qtr Revenue Estimate Feb-10 Avg. Estimate No. of Analysts Low Estimate High Estimate Year Ago Sales Sales Growth (year/est) 290.60M 1 290.60M 290.60M 272.69M 6.6%

Next Qtr May-10 374.60M 1 374.60M 374.60M 297.70M 25.8% 1.46B 1 1.46B 1.46B 1.28B

Current Year Aug-10 1.67B 1 1.67B 1.67B 1.46B 14.0%

Next Year Aug-11


Earnings History EPS Est EPS Actual 0.00 -0.26

Feb-09 0.09 0.36

May-09 0.16 0.21

Aug-09 0.43 0.76


Difference Surprise %

-0.26 %

0.27 300.0%

0.05 31.2%

0.33 76.7%

Current Qtr EPS Trends Feb-10 Current Estimate 7 Days Ago 30 Days Ago 60 Days Ago 90 Days Ago 0.23 0.23 0.23 0.17 0.10 0.44 0.44 0.44 0.36 0.32

Next Qtr May-10 1.84 1.84 1.84 1.33 0.93

Current Year Aug-10 1.99 1.99 1.99 1.65 1.19

Next Year Aug-11

Current Qtr EPS Revisions Feb-10 Up Last 7 Days Up Last 30 Days Down Last 30 Days Down Last 90 Days 0 0 0 0 0 0

Next Qtr May-10 0 0 0

Current Year Aug-10 0 0 0

Next Year Aug-11

Growth Estimate Current Qtr. Next Qtr. This Year Next Year Past 5 Years (per annum) Next 5 Years (per annum) Price/Earnings (avg. for comparison 13.65 categories) PEG Ratio (avg. for comparison 1.9 categories) 188.5% 22.2% 187.5% 8.2% 13.68% 7.2%

SHLM 96.6% 49.4% 38.0% 20.8% N/A 8.74%

Industry 350.0% 133.5% 86.3% 30.2% N/A 10.1%

Sector N/A N/A N/A N/A N/A N/A

S&P 500







Hedge Fund News
Hedge funds returned 0.5 percent in February, led by North American managers, as global stock markets rose on signs of recovery in corporate earnings and signs that U.S. interest rates will remain low according to Eurekahedge Pte. Hedge funds that trade currencies are being targeted by politicians casting them as speculators out to sink the euro and push Greece into insolvency. They are also losing money. An Ontario Securities Commission hearing into one of the worst hedge-fund scandals in Canadian history has come to the conclusion that retail investors in the Norshield funds were victims of dishonest conduct and other securities-law violations. Paulson and Soros, two huge and public hedge fund managers, recently took up stake in NovaGold, an exploration based company that targets land for mining and then partners with huge firms like Barrick to actually mine the ground.

Gartmore Group Ltd., the hedge-fund and mutual-fund manager that listed its shares on the London Stock Exchange in December, reported a decrease in operating earnings for 2009 but said its business is firmly on the mend and has received £273 million (about $409 million) in net new money so far this year. Greece is seeking political, not economic, support, according to Prime Minister George Papandreou who urged the G20 nations to impose more stringent regulations on hedge funds. Only nine months after Tribridge Investment Partners announced it had hired John Liptak to head the launch of its new Tribridge Asian Special Situations Fund, Citi has snatched Liptak to head up Asia-Pacific distressed and special situations. Liptak will be responsible for both Japan and non-Japan Asia and will start his new job at the end of March. Wang Bing, former chief of Deutsche Bank's Saba proprietary trading desk in Asia, plans to start a hedge fund focusing on mispricing of securities in Asia's equity and credit markets.

Hedge Fund Profile York Capital / New York About York Capital
It has often been observed that change is a constant in human affairs and indeed in the world at large. This is especially so in the business world. Driven by what Adam Smith termed the "invisible hand," mankind's tendency to progress creates an environment of corporate Darwinism, where companies that do not constantly act to improve their businesses will perish. This dynamic, rooted in human nature itself, is the foundation of event investing. York Capital Management was founded in 1991 with a simple goal: to provide consistent, superior riskadjusted investment returns relatively independent of the overall market. In the years since, the firm has pursued this goal through a combination of focused research and investment selection, and disciplined risk management. With offices located in New York, Washington, DC, London and Hong Kong, York manages over 12 billion dollars worth of assets on behalf of institutions, endowments, foundations, fund of funds, wealthy individuals and their families.

York Capital Managing Partners and Partners

James G. Dinan Founder, Chairman, Chief Executive Officer Jamie founded York Capital Management in September 1991 and is the Chairman, Chief Executive Officer and a Managing Partner of the Firm. He is also the Co-Portfolio Manager of the York Multi-Strategy, York Credit Opportunities, York Enhanced Strategies and York Event-Driven UCITS funds. From 1985 to 1991, he worked at Kellner, DiLeo & Co., where he became a General Partner and was responsible for investing in risk arbitrage and special situation investments, including distressed securities, high yield bonds and short selling. From 1981 to 1983, Jamie was an investment banker at Donaldson, Lufkin & Jenrette, Inc., where he was involved in a broad range of corporate finance and merger and acquisition activities. Jamie

received a B.S. in Economics, summa cum laude, from the Wharton School of the University of Pennsylvania and an M.B.A. from the Harvard Business School.

Daniel A. Schwartz
Chief Investment Officer

Dan joined York Capital in March 1993 and is the Chief Investment Officer and a managing partner of the Firm. He is also the Co-Portfolio Manager of the York Multi-Strategy, Select and Credit Opportunities funds. From 1990 to 1993, he worked as an Associate at Morgan Stanley & Co., Inc., spending two years in the Investment Banking Group and one year in the Global Equity Derivatives Group. Dan is currently a member, in his capacity as a York employee, of the Investment Committee of Arch Bay Capital, LLC. Additionally, he is currently is a member of the Board of Trustees of the REITS division of Yeshiva University and a Member of the Board of American Friends of “Shlava”. Dan received a B.A., magna cum laude, from Yeshiva University and an M.S. in Industrial Engineering from Columbia University. In the next issue of Hedge Funds and Investing, York Capital’s investment strategy and risk management policy will be uncovered.

Economic Calender
Monday Mar 8
Market Focus » Market Reflections »

Tuesday Mar 9
Market Focus » Market Reflections »

Wednesday Mar 10
Market Focus »

Thursday Mar 11
Weekly Bill Settlement 52-Week Bill Settlement

Friday Mar 12 Retail Sales 8:30 AM ET

Consumer Sentiment International Trade 9:55 AM ET 4-Week Bill Announcement ICSC-Goldman Store Sales MBA Purchase Applications 8:30 AM ET 7:00 AM ET 11:00 AM ET 7:45 AM ET Business Inventories Jobless Claims 10:00 AM ET Wholesale Trade 3-Month Bill Auction Redbook 8:30 AM ET 10:00 AM ET 11:30 AM ET 8:55 AM ET Quarterly Services Survey EIA Petroleum Status Charles Evans Speaks 6-Month Bill Auction 10:00 AM ET Report 9:30 AM ET 11:30 AM ET 10:30 AM ET EIA Natural Gas Report 4-Week Bill Auction 11:30 AM ET 52-Week Bill Auction 11:30 AM ET 3-Yr Note Auction 1:00 PM ET 10-Yr Note Auction 1:00 PM ET 10:30 AM ET

Bank Reserve Settlement

3-Month Bill Announcement 11:00 AM ET Treasury Budget 2:00 PM ET 6-Month Bill Announcement 11:00 AM ET 30-Yr Bond Auction 1:00 PM ET Fed Balance Sheet 4:30 PM ET Money Supply 4:30 PM ET

Google Yahoo Finance Big Charts York Capital Bloomberg