Investor Update: Goldman Sachs Group (GS), Validus Holdings (VR), DTS Inc. (DTSI)

Albany, New York (10/07/2014) – A group of Goldman Sachs Group Inc (NYSE:GS)’s private-equity funds acquired a minority stake in the hedge fund, Caxton Associates L.P., according to an article by The Wall Street Journal. It was not immediately disclosed how much GS invested in Caxton through its private-equity funds. Nonetheless, Caxton is worth nearly $8 billion. The stake acquired by GS in Caxton is reported to be 9.99%, but can be increased to 19.99% over the next several months. The stake is passive and does not come with representation on the Board of Directors of Caxton. GS was recently endorsed by analysts at Credit Suisse as an “outperform” stock while its target price was hoisted to $200 from $187.82.

Validus Holdings, Ltd. (NYSE:VR) announced that it has closed the acquisition of Western World Insurance Group, a specialty lines carrier. It further said that the acquired business will operate as a standalone company. VR paid $690 million for the all-cash acquisition deal. It expects the acquisition of Western World to boost its footprint in the U.S., which it terms as the world’s largest market. VR, a $3.63 billion provider of reinsurance coverage, posted revenue of $605.10 million in the most recent quarter, which was better than the consensus estimate of $495.64 million. Revenue was up 4.2% from the like quarter in the previous year.

DTS Inc. (NASDAQ:DTSI) has announced a strategic alliance with LG Electronics. The deal will see LG incorporating DTS premium audio technology in its complete lineup of entertainment products. LG will be able to use the technology in its home entertainment products such as sound bars, 4K TVs and digital media players for enhanced sound quality. LG, a $53 billion global company, is a leader in the consumer electronics. On the other hand, DTSI is a provider of audio technology. The company generated revenue of $36.20 million from its business activities in the most recent quarter. It surpassed the consensus revenue estimate of $28.48 million for the quarter.

About the Author

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.

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