Bloomberg – Perry Capital, the $10.9 billion hedge-fund firm run by Richard Perry, is betting on the paper and packaging industry anticipating that the value of companies could double if they adopt a new tax structure.
Perry took positions or increased holdings in International Paper Co., Rock-Tenn Co. (RKT) and KapStone Paper and Packaging Corp. (KS), according to a second-quarter letter to investors, a copy of which was obtained by Bloomberg News. Perry said that containerboard management teams can create master limited partnerships for their paper mills, which would increase earnings. MLPs pay no federal income tax so long as they distribute most of their cash to shareholders and are commonly used in the oil and gas industry.
