News
Each day, DailyAlts tracks major developments across the alternative investment world. Our content is procured from primary contacts in the industry and secondary sources across the web. Our goal is to give readers the most up-to-date news and engaging experience to open new doors and areas of knowledge. Our stories cover nine separate verticals of the alternative investment industry.
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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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Private Equity: BlackRock Reports Earnings for Q1 2020
BlackRock Q1 earnings dropped today.
The world’s largest asset manager reported revenue s growth 11% compared to a year ago. However, profits fell slightly compared to the first quarter of 2019. The asset manager also said that they continue to reward shareholders as they bought back $400 million of share repurchases in the current quarter and increased the quarterly cash dividend to $3.63 per share, or 10%. Earnings of $5.15 a share fell short of the analyst consensus estimates of $6.61 per share.
Liquid Alternatives: Gold ETCs See Record Inflows on Safe-Haven Buying
In a record-breaking March quarter, gold ETF holdings and assets added US$ 3 billion in net inflows, the largest quarterly gain in history, according to the World Gold Council. Over the past year, gold ETFs have boosted their AUM by 57%, the highest annual increase since the GFC. One beneficiary from this craze for gold was the Invesco Physical Gold ETC.
Real Estate: Blackstone Faces Toughest RE Market Since BREIT’s Founding
Blackstone’s non-traded real estate fund (BREIT) faces the most challenging environment since its 2017 inception.
BREIT has $34 billion in total assets. The group has been a big part of the firm’s real estate fundraising efforts in the past few years. Concerns exist that non-traded REITs like Blackstone’s offering are currently over-inflating their asset value. Publicly-traded REITs have seen their asset values fall by 20% or more in the past month. The REIT is priced once a month with the help of outside sources.
FinTech: iProov Launches Web Authentication for Web Browsers
iProov is a three-time winner of Finovate Best of Show. It is bringing a version of its renowned mobile identify verification app to laptops/PCs. According to data, consumers still prefer to use desktops and laptops for larger purchases. In 2019, web usage accounted for more than half of online revenue but only 37% of web traffic.
Venture Capital: VC Investing and Life After the Pandemic
Mike Abbaei, of Naples Technology Ventures, peers into the VC crystal ball in a guest article “How investment will change in a post-pandemic world,” published in Venturebeat.
In Abbaei’s view, the coronavirus pandemic is a traumatic and transformative event similar to 9/11. Just as 9/11 forever changed our approach to air traffic, travel reservations, and airport security, the pandemic will usher in permanent changes in our lifestyles and business operations, healthcare, security and the regulatory environment.
Digital Assets: China’s Virtual Currency To be Tested in Mobile App
The Agriculture Bank of China is making available a new mobile app to a select group of users. It appears to be downloadable from a website link (currently down) provided by the Bank. According to a report, the bank is perhaps launching a test run for the country’s virtual currency. It is also known as a central bank digital currency (CBDC), or in China, as DCEP.
The DailyAlts Playbook: How to Disappear, Ugly Economic Numbers, Rental Bailouts, and Just How Long Harvard Thinks We’ll Be Locked Inside Our Homes.
Last week, more than 6.6 million new workers filed for unemployment benefits. This week, the figure topped 5.2 million, bringing the total number of Americans unemployed to 22 million. We have formally wiped out all job gains since the end of the Great Recession.
Artificial Intelligence: AI is Helping Itself to Get Smarter and Smarter
Software programs have now become sophisticated enough to build AI programs that can improve and build upon themselves without human intervention. In testing, the program could leapfrog decades of AI research. Perhaps a seminal achievement, the Google program called AutoML-Zero could possibly discover more about AI than humans themselves.
Real Estate: Commercial Real Estate Development is at a Standstill, Broker Confidence Has Plunged
The continued spread of the COVID-19 outbreak is creating significant hurdles for many sectors of the commercial real estate development industry.
In New York City, the epicenter of the current crisis, development has slowed to a crawl. The Real Estate Board of New York’s Q1 2020 Quarterly Real Estate Broker Confidence Index shows very low sentiment.
“The survey found that, overall, for the first quarter of 2020, commercial broker confidence was 3.23, representing a 56% decrease since REBNY surveyed brokers in the fourth quarter of 2019, a decline directly attributable to the impact of the pandemic,” writes Erika Morphy of GlobeSt.com.
Real Estate: Green Street Advisors Talks Coronavirus and Real Estate
Leading real estate and REIT research firm Green Street Advisors has recently commented on the impact of the coronavirus on commercial real estate markets.
They note that that as recently as five weeks ago, no one was all that concerned with what the virus might do to real estate investment trusts balance sheet. That has changed quickly as the economic shut down to prevent the spread of the virus has altered both public and private real estate markets in a material fashion.
Venture Capital: Forbes Releases the 2020 Midas List
Forbes magazine has published its annual Midas List of the top 100 people in the venture capital business.
The list is put together by Forbes and TrueBridge Capital Partners ranks industry participants by the success of the companies that have funded and eventually exited.
Investors are ranked by their portfolio companies that have gone public or been acquired for at least $200 million over the past five years, or that have at least doubled their private valuation since initial investment to $400 million or more over the same period.
One-fourth of men and women on the list have been on the list for eight years.
The 2020 Midas List contains 12 newcomers and six returnees.
Liquid Alternatives: Moody’s Cracked the ESG Whip in a Third of its Rating Actions Last Year
Rating agency Moody’s is stepping up its assessment of companies’ performance on ESG counts. An analysis of Moody’s (NYSE: MCO) private sector rating actions last year revealed that ESG risks were cited as material in a third of the cases.
Digital Assets: TradeStation onboards Crypto Exchange ErisX To Add Liquidity
Online brokerage TradeStation’s subsidiary, TradeStation Crypto, will integrate with crypto exchange ErisX’s order book in a tie-up announced Wednesday. The partnership will encourage TradeStation customers to try their hand at crypto trading. More seasoned traders will appreciate the deeper liquidity and tighter spreads.
FinTech: World Bank Pushes for Financial Inclusion Via Fintech
The new report from the World Bank focuses on new digital technologies, particularly fintech.
The report “payment aspects of financial inclusion in the fintech era,” discusses the opportunities and challenges that come with using fintech to promote financial inclusion. Issued by the Committee on Payments and Market Infrastructures (CPMI) and the World Bank, the report connects fintech innovation with financial inclusion.
Artificial Intelligence: The FTC’s 5-Point Mantra for Managing AI
In a blog, the FTC emphasized its actions such as bringing suits against businesses that violate laws relating to AI and automated decision making. In particular, it cited laws such as the Fair Credit Reporting Act (FCRA), enacted in 1970, and the Equal Credit Opportunity Act (ECOA), enacted in 1974. The Commission said it used the FTC Act to avert injury to consumers from AI.
The consumer watchdog also codified its principles for the protection of consumers from AI and algorithms.
DailyAlts Playbook: Talks Ackman’s CNBC Defense, Earnings Season Blues, and Hedge Funds’ Small Business Cash Hubbalooza
This morning, the Dow Futures projected a 400-point decline as investors continue to digest the ongoing status of the coronavirus.
On Tuesday, President Donald Trump announced that the U.S. will halt all funding to the World Health Organization as the White House completes its review of the coronavirus outbreak.
Venture Capital: Climate Analytics Startup ‘The Climate Service’ Raises $3.825M
Durham, North Carolina-based The Climate Service (TCS) announced Tuesday the successful completion of its $3.825m Series A investment round. The startup focuses on analytics and climate risk. Persei Venture LLC led the investment round with participation from existing investors and new investors including the Association of International Certified Professional Accountants (AICPA), and Synovia Capital.
Private Equity: KKR Suspends Operations on Goodpacks Exit
KKR is suspending its efforts to exit its investment in Goodpacks, a Singapore based supply chain solutions company. While the company’s primary container leasing business to food and rubber companies has remained steady with little to no impact form the coronavirus economic slowdown, the bids received by KKR were far beyond what the private equity…
Private Equity: Leon Black Talks Aramark, the U.S. Economy, and the Feds
Leon Black made a rare appearance in the media yesterday. The co-founder of alternative asset manager Apollo Global Management (NYSE: APO) appeared on CNBC along with Aramark (ARMK) CEO John Zillmer. During the conversation, the two discussed their NYC Health Heroes program. Aramark, the world’s largest U.S.-based provider of food, facilities, and uniforms, partnered with Mr….
Venture Capital: Silver Lake Partners Takes Hit on Entertainment and Sports Investments
Silver Lake Partners has seen the value of several key holdings decline during the current economic slowdown. About 15% of the portfolio consists of companies in the sports and entertainment industry.
These holdings have taken a substantial hit as they are the center of the economic slowdown.
Let’s examine what is happening at the tech central Venture Capital and Private Equity firm.
Alternative Investments: What’s Happening With Shadow Banking
In the Great Credit Crisis, banks took the biggest hit and the lion’s share of blame for the economic collapse.
Banks entered the crisis with too little equity capital. Their loan portfolios consisted of garbage loans. From 2008 to 2012, 414 banks with almost $700 billion in assets failed. Hundreds more had to seek a merger with financially secure institutions.
This time, the banking system enters into an economic slowdown in much better shape.
Venture Capital: A Startup Making 3D Printers Switches to COVID-19 Test Swabs
A nimble startup in San Francisco, which made 3D printers for a living, has turned on a dime and is making COVID-19 test swabs instead. Of course, these are 3D-printed. Origin, the startup in question, has already completed successfully clinical trials on April 12.
The DailyAlts Playbook: Ray Dalio, Weezer Cover Bands, Bank Earnings, and Big Problems at Lime Asset Management.
This morning, financial companies started earnings season with a flurry of reports. Wells Fargo (NYSE: WFC) kicked off the day with news that it has set aside a large amount of cash over fears of potential customer defaults. The firm reported earnings per share of $0.01, much lower than the $0.33 expected among analysts. The firm also missed revenue expectations by a large amount. “Our results were impacted by a $3.1 billion reserve build, which reflected the expected impact these unprecedented times could have on our customers,” said CFO John Shrewsberry said this morning.
Hedge Fund: Jana Partners Strikes Deal with Bloomin’ Brands on Directors
Activist fund Jana Partners has struck a deal with Bloomin’ Brands (NASDAQ: BLMN) on board seats. The two firms agreed to add two new independent directors to the restaurant company’s board. Bloomin is best known as the owner of Outback Steakhouse. The activist fund, which owns 9% of BLMN, has been pushing for changes to the board due to falling sales at the company.