A portfolio manager is a director at a cancer foundation. That cancer foundation is located at the University of Texas Cancer Institute — the #1 ranked Cancer Institute.
The investment firm that the portfolio manager works at, holds stock in Freeport (NYSE:FCX) and Plains Exploration (NYSE:PXP). A director of Freeport, is also a director at the same cancer foundation with the portfolio manager. Freeport is currently involved in a deal with PXP.
The investment firm sells a large portion of their holding in FCX, and they buy PXP — and PXP is connected to deal at FCX.
News comes out. FCX stock falls while PXP stock rises.
The investment firm had great timing on the transactions.
According to the US News & World Report, the University of Texas M.D. Anderson Cancer Center is the #1 ranked cancer center in America. It gets a score of 100.0 out of 100. It has a ‘perfect’ score of 100.
The center is composed of executives. As per tax filings, the center has a foundation that is located at the University of Texas Cancer Center. This connection is detailed in the article, “When Is a Director Not a Director? FactSet, Freeport and the University of Texas”.
In the article, “Cancer Stocks”, I looked at the stocks that are held by the executives at the Cancer Center. Now it’s time to look at the stocks that are associated with those at the CLL Global Research Foundation.
UPDATE. I got a comment from the University of Texas with regard to CLL:
CLL Global Research Foundation is a totally separate 501(c)(3) foundation with its own structure, board, and governance; it is not governed or controlled by The University of Texas MD Anderson Cancer Center. The foundation’s current legal address is at MD Anderson.
As per tax filings, I took the list of individuals who are associated with the Cancer Foundation. And then I looked at the stocks that were associated with the individuals. This is what I found:
Ted Collins. Director at CLL. As per this Forbes link:
Mr. Collins has been an independent oil and gas producer since 2000. He is also chairman and chief executive officer of Patriot Resources Partners LLC and a director of CLL Global Research Foundation.
A portfolio manager is a director at a cancer foundation.
Susan Berry Kohlhas. Director at CLL. As per this link from Baldwin Investments:
Susan Berry Kohlhas, Managing Director, is Director of Research and a Portfolio Manager of Baldwin Investment Management. She came to Baldwin from Investment Counselors of Bryn Mawr where she held similar positions. She has over 25 years of individual and institutional investment and risk management experience in the financial services industry. Susan attended The College of William and Mary and the University of Delaware, earning a B.A. in Economics and History, Summa Cum Laude and Phi Beta Kappa. She serves on the board of the Chronic Lymphocytic Leukemia Global Research Foundation at the M.D. Anderson Cancer Center.
What stocks does she hold? We’ll get back to that a bit later.
Robert Nichols. According to the CLL webpage:
Mr. Nichols graduated from the Colorado School of Mines in 1966 and received his MBA from Southern Methodist University in 1969. He has served on the boards of the Boys Clubs of Dallas and Preston Trail Golf Club. Mr. Nichols is an active director of Hilltop Holdings as well as MD Anderson Cancer Center, where he has served on the Membership Committee, on the Development Committee of the Board of Visitors, as co-chair of the South Campus initiative, and currently as a member of the Campaign Executive Committee. Mr. Nichols was the co-founder and past chairman of the MD Anderson Dallas Living Legends Luncheon and co-founder and host of the MD Anderson Aspen Summer Symposium.
So Nichols is a director at Hilltop Holdings (NYSE:HTH).
And B.M. Rankin, Jr. According to the CLL webpage:
Mr. Rankin serves as chairman of the Board. He is vice chairman of Freeport-McMoRan Copper & Gold and McMoRan Exploration Company; Mr. Rankin is a co-founder of Freeport-McMoRan. He is currently a private investor and consultant. Mr. Rankin serves on numerous boards including the Board of Visitors of the University Cancer Foundation at MD Anderson Cancer Center. Mr. Rankin is an avid supporter of the University of Texas at Austin.
So Rankin is linked to Freeport (NYSE:FCX) and McMoRan Exploration (NYSE:MMR). But, keep in mind that MMR, FCX and Plains Exploration & Production Company (NYSE:PXP) are all involved in a deal right now. And for the sake of disclosure, let me note the relationships that occur between firms.
Based on FactSet’s data, I see: 10 direct and 5 third degree relationships between FCX and MMR; 22 third degree relationships between FCX and PXP; 2 direct and 1 third degree relationship MMR and PXP; 1 direct and 17 third degree relationships between FCX and the University of Texas; 1 direct and 4 third degree relationships between PXP and the University of Texas; and 1 direct and 18 third degree relationships between the MMR and the University of Texas.
The connections at Texas were also noted by Matt Kanterman at Benzinga.
He wrote the article, “Freeport Buying McMoRan Exploration and Plains Exploration: Too Close to Home?” on Dec. 5th, and he made this observation:
However, it is intriguing to note the overlap and intertwined relationships of the three companies’ boards. In fact, there are 22 separate relationships between the boards of Plains and Freeport alone. As stated, the overlap of McMoRan and Freeport’s boards is expected but this relationship raises questions as to the merits of the acquisitions. Nevertheless, there are 20 cases of board members from all three companies being intertwined through the boards. For example, James C. Flores, the Chairman, President, and CEO of Plains, is a Director for McMoRan. Richard C. Adkerson, President, CEO, and Director of Freeport, is Co-Chairman of McMoRan. And this is just one of many examples of overlaps between the boards.
One case of overlaps that stands out actually brings into question the University of Texas at Austin. Charles Groat, Professor of Geosciences at the University, is an Independent Director of Plains Exploration. This is interesting because B. M. Rankin Jr., Vice Chairman of Freeport, is the Director of the McCombs Business School at none other than the University of Texas at Austin.
I should note that I noted the relationships and some insider selling in the article, “Freeport, Insider Selling, Network Connections and the University of Texas”.
So, from the list of directors, that creates a list of five stocks that are associated with a few directors at CLL: ETP, OAS, HTH, MMR and FCX. And if we add PXP Plains Exploration & Production Company (NYSE:PXP) due to its relationship with MMR and FCX, then that creates 6 stocks.
Let’s go back to Kohlhas at Baldwin Investments. Since she’s a director at CLL with the other directors, then the question must be asked – did Baldwin buy or sell: ETP, OAS, HTH, MMR, FXC and PXP?
…. See more on the next page…
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