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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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Negative Interest Rates Accelerate in Europe, Impact Fund Fees
Negative interest rates have added another casualty. According to Pensions and Investments, 50.7% of European government bonds and 28.3% of euro-denominated investment-grade corporate bonds have negative yields.
Alternative Investments: PIMCO’s New ESG-Focused ETF
Bond giant PIMCO has launched RAFE, a smart beta ESG ETF. Here’s another environment-social-governance (ESG) focused ETF from PIMCO, the leading fixed-income fund house. Offered in collaboration with Research Affiliates, the Pimco RAFI ESG US ETF RAFE will track the Research Affiliates RAFI ESG U.S. Index. Research Affiliates RAFI ESG U.S. Index The Pimco RAFI…
FinTech: ZestMoney, the Loan Startup for India’s Credit-challenged, Raises $20 Million
ZestMoney, the Loan Startup for India’s Credit-challenged, Raises $20 Million from Goldman Sachs and others
Morgan Stanley Investment Management Raises $5.5 Billion for Its Third Global Infrastructure Fund
Morgan Stanley Infrastructure Partners (MSIP) announced it has raised $5.5 billion for North Haven Infrastructure Partners III. The private infrastructure investment team within Morgan Stanley Investment Management (MSIM) raised that money side months after the fund’s initial close in June.
HFR: New Hedge Fund Launches Decline in the Third Quarter
New hedge fund launches declined in the third quarter. This news reverses the trend of the first half of the year. The number of launches fell to its lowest level since the fourth quarter of 2008.
U.K. Government Approves Private Equity Group Advent’s Cobham Buy
Advent International can purchase the defense company Cobham Plc for $5 billion. The U.S. private equity firm received permission from the British government after it made several concessions to address concerns about national security.
Adams Street Partners Raises $740 Million for 2019 Global Fund Program
Adams Street Partners announce the final closing of the Adams Street 2019 Partnership Fund Program. The firm locked up roughly $740 million in capital commitments.
The global fund program received strong demand from investors worldwide. In a press release, the firm said new and existing investors came from the United States, Europe, the Middle East, and Asia.
Its investor base included public and corporate pension plans, high net worth individuals, foundations, and endowments. Adams Street Partners currently manages $40 billion in assets.
Former Chicago Board Options Exchange Director Gets Seven Years in Prison
Alvin Wilkinson once worked as director of the Chicago Board Options Exchange. Today, he’s facing seven years in prison, according to a statement from the U.S. Attorney’s Office for the Northern District of Illinois. Wilkinson swindled millions from unsuspecting investors over a 17-year period. He faced charges of mail fraud and wire fraud in 2017. Among the at least 30 victims of his Ponzi-type scheme were friends, family, and colleagues.
Hedge Fund Marcato Capital to Shut Down, Return Capital to Investors
Marcato Capital Partners will showdown after two years of lackluster returns. Multiple media outlets reported the developments on Sunday. According to such reports, Marcato founder and PM Richard McGuire started telling his investors of plans to shut the fund last week. Given that the portfolio is currently holding a lot of cash, McGuire plans to return the money quickly, the report indicates. The firm has faced a series of redemption requests over the last few months.
Private Equity Firm Lone Star Buys BASF Chemical Business
Lone Star, the Dallas-based PE shop, has purchased the Construction Chemicals business of BASF. The $3.51 billion deal will likely close in Q3 2020. The deal comes as BASF attempts to focus on more profitable operations after this deal, according to a press release. Reuters had reported that a deal was likely last month after Lone Star aligned itself with several firms seeking a deal. The PE shop had walked away from a bid, but returned after invitation.
Former Hedge Fund BlueCrest Capital Now Sitting on a 50% Gain for 2019
BlueCrest Capital has earned 50% gains since the start of the year. This is a remarkably solid return after the company returned outside investor capital four years ago. The Financial Times says that the firm has capitalized on emerging-market bonds and trading interest rates. A 50% return through November is well ahead of the 9% earned by by the average hedge fund in 2019. Over the first 11 months, hedge funds are averaging returns of 9%, according to HFR. The S&P 500, meanwhile, has gained 28%.
Aberdeen Standard to Manage LF Woodford Income Focus Fund
Standard Life Investments will now manage the LF Woodford Income Focus fund, according to Link Fund Solutions. The arm of Aberdeen Standard Investments will replace Neil Woodford, whose flagship fund collapsed in October. Regulators suspended the fund that month thanks to ongoing challenges around its liquidity. ASI will take over the $351 million fund on December 31. Link said in a statement last week that it will reopen the fund in February 2020.
Community Banking: Evans Bancorp to Buy FSB Bancorp
Evans Bancorp announced this week plans to purchase FSB Bancorp (FSBC) for approximately $34.7 million.
The price of $17.80 per share for FSB Bancorp will be paid 50% in cash and 50% in the stock.
The transaction is subject regulatory and shareholder approval and is expected to close in the second quartered 2020
Hedge Funds: November 2019 Saw Good Gains, says Preqin
A rally in the global markets pushed November hedge fund returns higher.
The Preqin All-Strategies Hedge Funds benchmark gained +1.29% in November. That built on a +0.88% return in October and +0.4% in September. Hedge funds got a tailwind from the global rally in equities in November.
Hedge Funds: ValueAct Capital Gets Access to Confidential Citi Information for Another Two Years
ValueAct Capital Gets Access to Confidential Citi Information for Another Two Years. In return, ValueAct will support Citi’s board and management.
ValueAct Capital, one of the most followed activist hedge funds in the industry, first engaged with Citi in early 2018. Back then, ValueAct Capital acquired a stake in Citi, which is currently 1.3%. In January 2019, Citi and ValueAct entered an Information Sharing and Engagement Agreement valid through December 2019. This agreement has been revalidated for another two years.
Real Estate: LaSalle’s 2020 ISA Advises Strategic Caution
The annual strategy report from LaSalle advises investors to maintain a strategic balance of offensive and defensive positions.
LaSalle Investment Management’s Investment Strategy Annual (ISA) 2020 says investors need to capitalize on opportunities and mitigate risk in 2020, according to an article by Andrea Zander in Institutional Real Estate, Inc.
The report covers outlooks for both the Canadian and US real estate markets.
Alternative Investments: SEC to Redefine The Term “Accredited Investor”
The SEC is proposing to amend the rules that define the term “accredited investor,” a class of investors allowed to invest in private market investments such as hedge funds and startups. The threshold to qualify as an accredited investor is currently $1 million.
Activist Update: Jonathan Litt Wants to Create a Casino REIT Colossus
Jonathan Litt Wants to Create a Casino REIT Colossus. Litt’s firm, Land & Buildings (L&B), has accumulated a “significant” position in GLPI, Litt revealed on Twitter on Wednesday. Besides, GLPI is now also L&B’s “largest position,” he tweeted. Litt says a GLPI-Vici deal will create a significant upside for GLPI shareholders.
Melvin: Hedge Fund Tiger Cubs Still Bullish on Chewy, But Why?
Is Chewy a good stock to buy? Not according to David Einhorn. In his 2nd quarter shareholder letter, the Greenlight Capital manager talked disparagingly about Chewy (CHWY), the online pet products company.
Artificial Intelligence: Walmart’s Cutting Edge Use of AI and Machine Learning in Retail
Walmart straddles both brick-and-mortar and online, giving it a unique tech perspective. In new applications, Walmart uses machine learning, barcode technology, facial recognition, IoT, and RFID to enhance the shopping experience. Earlier this year, Walmart unveiled its store of the future at the Neighborhood Market in Levittown, New York.
Artificial Intelligence: AI Makes Steady Inroads Into the US Economy
Stanford University’s latest report, AI Index, provides useful insights into the progress of AI.
According to the report, Singapore, Brazil, Australia, Canada, and India experienced the fastest growth in AI hiring from 2015 to 2019. However, in the US, the share of jobs in AI-related topics increased from 0.26% of total jobs posted in 2010 to 1.32% in October 2019.
CB Insights Notes Record CVC Investment in Fintech
According to a report released Tuesday, financial services companies have pumped $8 billion across 329 Fintech deals during 2019. Roughly 50% of those capital injections have come from banks, while the third quarter experienced a new record for corporate venture capital (CVC) in the space. The report notes that banks and other firms are looking to put money into investments with upside at a time that interest rates are low.
Warburg Pincus’ Jeffrey Perlman Bullish on Vietnam
Jeffrey Perlman of Warburg Pincus is bullish on Vietnam and worried about companies with a high cash-burn rate. In an interview with DealStreetAsia, the Warburg managing director outlined his views of the market heading into 2020.
Alternative Investments: Biotech ETFs Suffer from Political Posturing on Drug Prices
The iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB), the largest biotech-related ETF, has been losing ground since Monday. The ETF is locked inside a downward channel and is making lower-highs and lower-lows. Concerns on pre-election posturing around drug pricing appear to be pressuring IBB, the largest biotech-related ETF.