Maverick Capital, a $10.5 billion hedge fund that’s had a lousy year, has a plan to turn it around

Lee AinslieCraig Barritt/Getty Images

  • Maverick Capital, a $10.5 billion hedge fund run by Lee Ainslie, told clients that its disappointing performance is about to turn up.
  • That’s based on past experience, Ainslie told clients in a letter.
  • Ainslie wrote: “Previous to this current period, Maverick had only suffered eleven five quarter periods with negative returns in our history, and Maverick has delivered positive returns in the following year every time.”

Maverick Capital, a $10.5 billion hedge fund that’sbeen having a rough year, says it’s just about to turn up.

The firm’s flagship fund is down about 2% this year, people familiar with the matter said. In an October 20 letter to clients, the firm said it’sexpecting an uptick because that’s what has happened every other time in the firm’s 24-year history.

Here’s founder, Lee Ainslie, on the firm’s chances of recovery, with emphasis added. For background, the Dallas-based firm launched in 1993.

“I believe our historical recoveries after previous disappointing periods plays a role in this collective confidence. Previous to this current period, Maverick had only suffered eleven five quarter periods with negative returns in our history, and Maverick has delivered positive returns in the following year every time. Indeed, the current period reminds me of 2011, when we suffered through a five quarter period that was slightly worse than the past five quarters. After that disappointing period, we had an exhaustive review of our portfolio (which led us to increase certain positions and eliminate others just as we have done over the last few months), revamped our team, and made several meaningful improvements to our process. These changes led to one of the strongest multi-year periods in our history, and I believe we are poised for another period of sustained success.”

0% performance fees

The client letter, which recaps the firm’s investor day in New York earlier this month, also discusses the debut of a share class for existing investors that includesnoperformance fees before hitting the client’s high watermark.

That fee class allows existing investors to invest up to 50% of their current balance, charging a 1% management fee and no performance fee until current high water marks are hit, the letter said.

The firm has also lowered other feesvia new share classes. Maverick ischarging anywhere from 1 and 10 on capital that is committed for five years, to 2 and 20 for investors who agree to one year, for instance.

In the client letter,Maverick said it has received fresh money from investors over the past two years, despite the disappointing performance.

Maverick told clients earlier this year that its underperformance was related to, among other things, its short book.

“The median stock in our investable universe was up 7.7% in the first half of the year, and our shorts were up 12.6% – outperforming (to our detriment) the median stock by almost 5%,” Ainslie wrote in the a client letter over the summer, which was previously covered by Business Insider.

Maverick’sflagship fund was down 10.6% last year after fees, according to performance numbers reported in client documents.

A Maverick spokesman declined to comment.

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The top 5 disruptive trends in self-driving cars, delivery, transportation, and logistics (AMZN)

Transportation and Logistics Trends CoverBII

Technology is disrupting nearly every part of our daily lives, and the transportation space is no different.

The shift to digital is transforming the way businesses deliver and track goods, from the point of initiation to the final destination.

Last-mile delivery, self-drivingcars and trucks, delivery drone and robots, and artificial intelligence applications in logistics are all poised to change how companies send goods, how customers receive packages, and how the population gets from Point A to Point B.

BI Intelligence, Business Insider’s premium research service, hashighlighted five of the most important trends that we predict will drive major shifts in the transportation and logistics landscape in the next five years. Thesetrends are based on ongoing research that includes forecasts, data tracking, and interviews with industry executives.

Some of these trends include:

  • The impact of Amazon’s acquisition of Whole Foods
  • How Congress will affect self-driving car adoption
  • The effect of artificial intelligence on delivery
  • And much more.

This cutting-edge list can be yours FREE today. As an added bonus, you will gain immediate access to the newest BI Intelligence newsletter, Transportation and Logistics.

To get your copy of this slide deck, simplyclick here.

How drones will change the world in the next 5 years

drone hardware market 1BI Intelligence

This is a preview of a research report from BI Intelligence, Business Insider’s premium research service. To learn more about BI Intelligence, click here.

The fast-growing global drone industry has not sat back waiting for government policy to be hammered out before pouring investment and effort into opening up this all-new hardware and computing market.

A growing ecosystem of drone software and hardware vendors is already catering to a long list of clients in agriculture, land management, energy, and construction. Many of the vendors are smallish private companies and startups – although large defense-focused companies and industrial conglomerates are beginning to invest in drone technology, too.

In areport from BI Intelligence, we take a deep dive into the various levels of the growing global industry for commercial drones, or unmanned aerial vehicles (UAVs). This report provides forecasts for the business opportunity in commercial drone technology, looks at advances and persistent barriers, highlights the top business-to-business markets in terms of applications and end users, and provides an exclusive list of dozens of notable companies already active in the space. Finally, it digs into the current state of US regulation of commercial drones, recently upended by the issuing of the Federal Aviation Administration’s draft rules for commercial drone flights. Few people know that many companies are already authorized to fly small drones commercially under a US government “exemption” program.

Here are some of the key takeaways from the report:

  • We project revenues form drones sales to top $12 billion in 2021, up form just over $8 billion last year.
  • Shipments of consumer drones will more than quadruple over the next five years, fueled by increasing price competition and new technologies that make flying drones easier for beginners.
  • Growth in the enterprise sector will outpace the consumer sector in both shipments and revenues as regulations open up new use cases in the US and EU, the two biggest potential markets for enterprise drones.
  • Technologies like geo-fencing and collision avoidance will make flying drones safer and make regulators feel more comfortable with larger numbers of drones taking to the skies.
  • Right now FAA regulations have limited commercial drones to a select few industries and applications like aerial surveying in the agriculture, mining, and oil and gas sectors.
  • The military sector will continue to lead all other sectors in drone spending during our forecast period thanks to the high cost of military drones and the growing number of countries seeking to acquire them.

In full, the report:

  • Compares drone adoption across the consumer, enterprise, and government sectors.
  • Breaks down drone regulations across several key markets and explains how they’ve impacted adoption.
  • Discusses popular use cases for drones in the enterprise sector, as well as nascent use case that are on the rise.
  • Analyzes how different drone manufacturers are trying to differentiate their offerings with better hardware and software components.
  • Explains how drone manufacturers are quickly enabling autonomous flight in their products that will be a major boon for drone adoption.

Simply put, The Drones Reportis the only place you can get the full story on the rapidly-evolving worldof drones.

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fascinating world of drones.

15 actors who played characters way older or younger than they are in real life

Blake Lively Green Lantern movie 2006Getty Images/Warner Bros.

Hollywood actors sometimes go to extreme lengths to fit the perfect roles, whether its using method acting strategies or losing massive amounts of weight. But other times the actors manage to blend into characters much older or younger than themselves with simply a bit of makeup or the right wardrobe.

Keep reading for a look at 15 actors who were far older or younger than the parts they played on screen.

Stacy Dash played a high school student in “Clueless” when she was 29 years old.

Frazer Harrison/Getty Images/Paramount

Dash’s character, Dion, was meant to be a 17-year-old high schooler in the cult classic “Clueless.”

Emma Thompson starred as 19-year-old Elinor Dashwood in “Sense and Sensibility” when she was 35.

AP/Getty Images

Thompson wrote the screenplay (which won her an Oscar in 1995) and played the lead character in the period drama.

Winona Ryder was 28 when she played an 18-year-old in “Girl, Interrupted.”

Getty Images/Columbia Pictures

Ryder was cast as 18-year-oldSusanna Kaysen when she was nearly a decade older than the character.

See the rest of the story at Business Insider

Intel sees strong growth beyond consumer PC chips

Intel beat its earnings expectations for the third quarter, but not because of growth in its core PC microprocessor business. Rather, theworld’s biggest chip maker saw strong growth in chips for programmable devices, non-volatile memory, the Internet of Things, and data centers. And it is boosting its predictions for revenue in the fourth quarter.

Analysts expected adjusted third-quarter results of net income of 80 cents a share on revenue of $15.73 billion. Intel reported adjusted net income of $1.01 a share on revenues of $16.1 billion.

We executed well in the third quarter with strong results across the business, and we’re on track to a record year, said Brian Krzanich, Intel CEO, in a statement. I’m excited about our progress and our future. Intel’s product line-up is thestrongest it has ever been with more innovation on the way for artificial intelligence, autonomous driving and more.

Krzanich said that Intel is shifting from a PC-centric business to a data-centric business, which means its chips are targeted at devices that go far beyond processors for consumer PCs. Intel recently closed its $15 billion acquisition of Mobileye, a maker of autonomous driving technology.

Intel faces a newly competitive rival in Advanced Micro Devices, whose Zen-based chips are the most competitive in a decade. On top of that, graphics chip maker Nvidia has also become very aggressive in artificial intelligence chips.

The data center business grew 7 percent from a year ago, while consumer PCs were flat. Non-volatile memory grew 37 percent, programmable logic chips grew 10 percent, and Internet of Things grew 23 percent.

The data center, Internet of Things and memorybusinesses all achieved record revenue in the third quarter. Intel also raised its full-year revenue outlook by $700 million to $62 billion, with full-year GAAP earnings per share targeting $2.93 a share, about 27 cents more optimistic than in the previous outlook.

Bob Swan, chief financial officer at Intel, said in an analyst call that the overall PC supply chain is operating at healthy levels.