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Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while the ROCm 6 open software stack introduces new features supporting Large Language Models (LLMs). Additionally, the Ryzen 8040 Series processors come equipped with Ryzen AI capabilities.
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Liquid Alternatives: BlackRock Floats ESG Linked Ultra Short ETFs
Investors remain undeterred by the market turmoil and sustainability remains an investing priority. Accordingly, BlackRock has launched three ESG-screened, ultra short term ETFs in Europe. The ETFs are denominated in US dollars, euros, or pound sterling depending on the underlying investment-grade corporate bonds.
Digital Assets: CFTC Clarifies Definition of “Actual Delivery” in Crypto Trades
The U.S. Commodity Futures Trading Commission (CFTC) has finally shed light on a vexed question. What constitutes “actual delivery” of digital assets during their trade? In a unanimous decision, the Commission cleared its interpretation of delivery as applied to retail commodity transactions involving digital currencies. Companies have 90 days to implement the new guideline.
Venture Capital: Corona Launches Some Asian Businesses on a New Growth Trajectory
The coronavirus has delivered unexpected benefits for some businesses. Social distancing norms and country-wide lockdowns have given a boost to remote working. Companies in the health tech sector such as telemedicine and online pharmacies are seeing new interest and rapid growth. Not surprisingly, private investors are on the prowl, looking to get in on these Asian gems at bargain-basement valuations.
Real Estate: Tom Barrack Sounds the Alarm Over Commercial Lending
Tom Barrack penned a white paper that outlines the need for massive and immediate relief in the commercial real estate lending markets. Barrack is the Chairman and CEO of Colony Capital (NYSE: CLNY). Barrack makes the case that if the commercial real estate lending markets fail, the spillover effect to the rest of the economy will be disastrous. He predicts the results “could be exponentially worse than the economic effects of the 1987 crash, September 11th attacks, and 2008 recession, combined. The long-term impact on the economy could be catastrophic.”
FinTech: Revolut Expands Across the Atlantic; Dismisses Corona Concerns
Digital “neobank” Revolut, the London-based fintech unicorn, is rolling out its app-based banking service in the U.S. The upstart bank, which commenced operations in 2015, has already amassed over 10 million customers in the U.K. and Europe. Revolut has no physical branches and is entirely app-based. U.S. customers can now open an account with a debit card in minutes using their smartphone.
Private Equity: American Investment Council Releases Deal Flow Report for 2019
The American Investment Council released a report this week that shows that the private equity industry invested $309 billion in 4,788 businesses across all regions of the country.
The median investment in each private equity-backed business was $58.9 million. The top three sectors receiving the most private equity investment in 2019 were Business Products & Services ($93 billion), Information Technology ($64 billion), and Healthcare ($45 billion).
Alternative Investments: Ares Capital Pens Shareholder Letter on Coronavirus
Specialty finance lender Ares Capital (NYSE: ARCC) sent a letter to its shareholders. The letter aims to calm fears about the impact of the coronavirus.
The Business Development Company’s (BDC) stock is down 57% over the last month as investors have fled the high-risk private lending firms.
Ares Capital Managemen said its portfolio centers on senior secured loans and is highly diversified across 354 different portfolio companies. The firm has concentrated in defensive industries such as healthcare services, software and services, and commercial and professional services, and management feels that gives the loan portfolio an additional margin of safety.
Digital Assets: SEC Busts Crypto Scam That Promised 224,923% Return
The SEC has put a stop to an audacious crypto con scheme that raised $4.3 million from around 150 investors, both in the U.S. and abroad. It alleged that former Washington state senator David Schmidt and Florida residents Robert Dunlap and Nicole Bowdler conspired in the Meta 1 scam.
Hedge Funds: Third Point Facing Rough Start to 2020
While the main fund is down 13.5%, the listed shares that trade over the counter in the United States are currently down around 30% year to date as investors have adopted a risk-off position and sold shares aggressively. Since its inception in 1996, the fund has averaged 14.5%, making it one of the top-performing hedge funds over that period. Investors may be abandoning ship at the wrong time.
The stock is trading at 54% of book value right now. Given the collapse of global markets right now, the book value may be overstated a bit, but as of a week ago, the published Net Asset Value was $18.34 a share versus the current price of less than $12. Even if the fund has declined in line with the market return the shares are still trading at a substantial discount to the value of the stocks they own,
Real Estate: iBuyer Zillow Freezes Home Buying; Expert Warns of Housing Market Shutdown
A LendingTree economist says the virus will bring the U.S. housing market to a halt. Further, Zillow Group (NASDAQ: ZG) announced Monday it will pause home buying in all 24 markets where ts Zillow Offers unit currently operates. The action was in response to local public health orders related to COVID-19. This has implications for the U.S. housing market.
FinTech: Nucleus Financial Group Postpones 2019 Annual Results on FCA Covid-19 Guidance
Nucleus Financial Group (LON: NUC), a fintech that helps clients and advisers manage investments on a single platform, has put off the announcement of its annual results for 2019 planned for March 24. The firm complied with the FCA’s guidance in this regard.
Artificial Intelligence: An AI Bot Will Design the Next-Gen AI Chips
Chips specifically designed for artificial intelligence applications are very time-intensive to design and develop. Unfortunately, by the time these chips are ready for use, machine learning algorithms have moved on, becoming faster and more advanced. Result: the chips are no longer relevant.
By cutting down the time taken during the chip design cycle, this lagging anomaly could be solved. Then Google (NASDAQ: GOOGL) hit upon the solution. Using AI for the design process.
Liquid Alternatives: The Fed’s “All-it-Takes” Stimulus Includes Purchase of Bond ETFs
In a move aimed at ensuring liquidity in the bond market and related ETFs, for the first time, the U.S. Fed will purchase corporate bond ETFs. The Fed’s new facilities are the Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issues, and the Secondary Market Corporate Credit Facility (SMCCF), to provide liquidity for outstanding corporate bonds.
Private Equity: The State of the PE Industry and Coronavirus
McKinsey and Company just published guidance for the private equity industry. In the paper titled “Private Equity and the New Reality of Coronavirus.” They suggest that “private equity (PE) firms and their portfolio companies come into the crisis riding a decade-long wave of growing transaction volumes, valuations, and fundraising. That position of strength may prove a bulwark in the months ahead, especially for firms that have exercised prudence recently.
Fintech: iCapital Network Announces $146 Million Funding Round
Financial technology platform company iCapital Network announced today that they had closed a $146 million financing round.
The iCapital platform helps advisors that need easy to use technology-enabled investment processes that help to incorporate alternative assets into their portfolios.
The platform also helps alternative asset managers with tie fundraising efforts and helps infostructure providers such as administrators, custodians and transfer agents.
Digital Assets: New Jersey’s Proposed Regulation of Cryptos Referred to Committee
New Jersey Assemblywoman Yvonne Lopez introduced the “Digital Asset and Blockchain Technology Act” in the New Jersey General Assembly in February 2020. The Assembly’s Financial Institutions and Insurance Committee will now review the ‘crypto’ bill.
Liquid Alternatives: ETF Short-sellers Making Money Off The Panic Must Pay More
There has been a sudden jump in the demand to borrow ETFs for purposes of shorting. Investors may be looking to short ETFs for various reasons, but one major factor is the sudden spike in the cost of options. Options are widely used for hedging strategies but have become expensive because of the intense, coronavirus induced volatility in the market in March. As a result, borrowing costs of ETFs have, on average, shot up 40% according to a report by data provider S3 Partners.
Venture Capital: VC World May Run at Half-Speed Over the Next Few Months
The coronavirus has disrupted networking, the lifeblood of the VC industry, or has it?
You get a somewhat mixed response to that question. Meeting an entrepreneur in person – that sine qua non of the venture industry – is usually not possible now that lockdowns and social distancing are so pervasive. Here’s a look at what VC investors and founders think.
Artificial Intelligence: AI and Robotics In the Frontline Against Coronavirus
AI can help cut crucial research time in the search for a cure. Robots reduce infections by minimizing physical contact.
Mankind is under assault from the highly infectious and dangerous coronavirus. At the time of writing confirmed infections include 339,035. Nearly 15,000 people have died, and only 98,799 have recovered. The most pressing priority in the battle against this disease is to reduce the rate of infections. Equally important, a vaccine must be found to immunize humans against the virus. Robotics and artificial intelligence are already helping on these fronts.
FinTech: Aussie Telco Software Company ZipTel Acquires Financial Wellness Company Douugh Ltd
Ziptel Ltd (ASX: ZIP), an Australian owned and operated telecommunications business that provides international roaming and calling solutions, is changing its business model. It is acquiring the entire share capital of Douugh Ltd, a fintech that helps people achieve financial wellness. On completion of the acquisition, ZipTel’s name would change to ASX: DOU. In this new avatar, ZipTel would become a financial software and services company.
Hedge Funds: Seth Klarman Emerges to Open Baupost Group
Value investor Seth Klarman has emerged from his bearish slumber. The head of Baupost Group announced he had spent $1.5 billion on new investments in recent weeks. Bloomberg reports that Klarman sees significant value due to fears about coronavirus and valuations. The hedge fund manager also announced he is seeking more investor capital for his $29 billion fund.
Real Estate: REIT Directors Are Buying Up Shares
The SPDR Dow Jones REIT ETF (IRE) has fallen by 38% in the past month as concerns about quarantines and lockdowns emptying offices, hotels, shopping centers, and other commercial real estate properties. Dire predictions about changes in work habits and a deep economic slowdown destroying the industry are everywhere on the internet and media.
Liquid Alternatives: ETFs Cushioned an Insane Market
Financial markets faced a multitude of headwinds as never before.
ETFs, the innovative financial products that sprung from the calamitous financial crisis of 2008, have played a calming role in the recent market mayhem.
Venture Capital: (Coronavirus) New Service Matches Cash-Hungry Startups With Still-in-the-Game Investors
Laurent Grill has over a decade of experience in the Los Angeles venture finance industry. He is an investor at Luma Launch, the corporate venture arm of the film studio Luma Pictures. Realizing the current uncertainties startups are facing with their funding, Grill decided to put his not inconsiderable network to use.