Juul, the dominant name in the industry, was valued at $38 billion when Altria Group Inc. bought a 35% stake last December. Altria hasn’t updated the value of that stake since the vaping controversy erupted. While the international crackdown on vaping would hurt all makers of e-cigarettes, Juul is facing the most scrutiny as the biggest player, with U.S. regulators investigating its marketing practices. That could provide an opening for competitors like NJOY to gain ground.
Mudrick has proven resilient before. The former money manager at Contrarian Capital Management founded his hedge fund in 2009, growing it to oversee about $2.8 billion during an era when many other veterans got out of the business. In 2015, he overcame a 26% loss in his main fund that could have upended the firm. Since then, the flagship has rebounded and now boasts a three-year track record in excess of 20% on an annualized basis, according to an investor presentation.
This article provided by Bloomberg News.