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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Liquid Alternatives: Oil Demand to Plummet; ETFs Likely to Take it on the Chin
The coronavirus has hobbled travel, supply chains, and global economic growth forecasts. Crude oil will pay the price. Norway’s biggest independent energy consultancy Rystad Energy predicted on Thursday that The coronavirus outbreak will cut growth in global crude oil demand by more than half this year compared to earlier forecasts.
FinTech: Cannabis Cash Spells Opportunity for Fintechs
The regulation-strapped but cash-rich weed industry is fertile ground for fintech innovation.
Legalization of marijuana, for medical or recreational use, has not addressed a very basic need of the industry – access to banking services. Due to the designation of weed under the Controlled Substances Act, the industry is still considered illegal under US federal law. As a result, banks shun the marijuana industry, thus relegating it to a banking desert. Can fintechs step in where banks fear to tread?
Venture Capital: Sequoia Capital Sounds Alarms About “Black Swan” Coronavirus
Sequoia Capital issued a huge alarm this week in a memo to founders and the CEOs of its portfolio companies. “Coronavirus: The Black Swan of 2020” discusses the impact of falling business activity, supply chain disruptions, and travel challenges. “With lives at risk, we hope that conditions improve as quickly as possible,” the memo reads. “In the interim, we should brace ourselves for turbulence and have a prepared mindset for the scenarios that may play out. Below is the full version of the letter, which is very relevant to almost any small business or startup in the country.
Real Estate: Global Medical REIT Reports Earnings
Global Medical reported that they had increased total revenue 42.3% period-over-period to $20.5 million, It cited its acquisition activity over the last twelve months for the boost. During the quarter, the REIT acquired five properties, encompassing an aggregate 185,220 leasable square feet, for an aggregate purchase price of $72.8 million at a weighted average cap rate of 7.4%.
For the quarter Funds from Operations (“FFO”) came in at $0.21 per share and unit. This was higher than the $0.20 per share and unit in the comparable prior-year period.
Private Equity: Proskauer Rose Discusses the 10 Biggest Litigation and Regulatory Risks
The law firm says that private markets have attracted more capital than public markets over the past two decades. The report says, “We have witnessed that trend continue during the past year, and have worked with our clients to navigate the greater uncertainty that results with greater litigation risk and regulatory scrutiny. And as predicted, the ride seemed to get a little bumpier in the second half of 2019, with several events suggesting that litigation and regulatory risks have ratcheted higher.”
Liquid Alternatives: Ultimus’ Clients Are Among the First to Market With ETFs Under Rule 6c-11
So long as they comply with the SEC’s conditionalities, asset managers can launch a new ETF. Rule 6c-11 became effective on December 23, 2019, and fund administrators Ultimus Fund Solutions have been quick off the mark. Ultimus helped two of its adviser clients launch active transparent exchange-traded funds (ETFs) in accordance with new Rule 6c-11.
Artificial Intelligence: How Facebook Uses AI to Detect Fake Accounts
Facebook (NASDAQ: FB) has finally achieved traction in its drive to stamp out fake accounts guilty of spreading spam, phishing links and malware. Its Deep Entity Classification, an AI-powered tool, will take down this menace.
The DailyAlts Playbook: Why it’s Time to Ditch T-Mobile, Berkshire’s Delta Buy, a Bearish Bill Ackman, and the Global Response to Coronavirus.
THE DAILYALTS PLAYBOOK March 5, 2020 Today, the DailyAlts Playbook talks about why it’s Time to Ditch T-Mobile, Berkshire’s Delta Buy, a Bearish Bill Ackman, and the Global Response to Coronavirus. PRIME OVERVIEW Apologies again for the later delivery this morning. The new T-Mobile update has been a disaster. It deletes calendars. It installs games…
FinTech: Ant Financial Beefs Up Ties With Klarna; Buys Minority Stake
Ant Financial, which owns the Chinese Alipay payments platform and is an affiliate of e-commerce giant Alibaba (NYSE: BABA), has acquired a small stake in Swedish fintech Klarna.
Klarna, along with app-based challenger bank Revolut, commands a valuation of $5.5 billion. Except for its recent loss in 2019, Klarna has been profitable, which is rare among unicorns. It offers a “buy now, pay later” scheme that offers shoppers interest-free financing over monthly installments.
Venture Capital: Lockheed Ventures Makes Strategic Investment in Ayar Labs
Lockheed Ventures, the venture investment unit of defense conglomerate Lockheed Martin (NYSE: LMT), invested an undisclosed amount into Ayar Labs. Silicon Valley-based Ayar Labs develops broadband conductors.
Alternative Investments: S&P Global Market Intelligence Survey Sees Less Deal Making in 2020
S&P Global Market Intelligence surveyed private equity dealmakers from around the world. The study found that less than half of them thought 2020 would see as much deal activity as 2019. Pessimism picked up form last year as 20% of all respondents anticipate a decline in deal-making over the next 12 months, up from 14% who felt the same last year. Latin America was the most optimistic as 67% of the managers surveyed expect activity to improve this year compares to last.
Alternative Investments: Essentia Analytics Adds New Board Member (and Other People on the Move This Week)
Essentia Analytics has added Martin Fincham to its Board of Directors. The company is a provider of behavioral data analytics and consulting for professional investors. Fincham comes to the firm with three decades of experience in the technology industry as an entrepreneur, CEO, and advisor to tech companies. He is currently on the boards of multiple B2B SaaS companies, including SHE Software, EyeQuant, Veeqo, Wazoku, and BlackCurve.
ESG: Brown University Dumps 90% of Its Fossil Fuel Investments
Brown University has divested 90% of its holdings in companies that extract fossil fuels. In a letter to the campus Wednesday, President Christina Paxson announced the decision. The school’s endowment will eventually liquidate the rest of its holdings.
Private Equity: Stephen Schwarzman Isn’t Sure the Fed Can Restore Confidence
Blackstone CEO Stephen Schwarzman said it “remained unclear” if the Fed can restore economic confidence following the coronavirus outbreak. The Federal Reserve slashed interest rates by 50 basis points on Tuesday. Fed Chair Jerome Powell is attempting to reduce economic fallout due to the spread of the virus. However, the Dow still shed more than 700 points after the rate cut.
Private Equity: Blackstone Group Buys NRStor C&I
Blackstone (NYSE:BX) announced today that funds managed by Blackstone Energy Partners have completed the acquisition of NRStor C&I L.P. (“NRStor”). NRStor is a Toronto-based developer of battery storage solutions, targeting scale storage deployment opportunities in North America. Terms of the transaction were not disclosed.
Hedge Funds: Bill Ackman Prepares Investors for Coronavirus
Pershing Square Capital founder Bill Ackman sent a letter to investors about the threat of coronavirus on Tuesday. His statement came shortly after the Federal Reserve slashed interest rates by 50 basis points.
The DailyAlts Playbook: Super “Biden” Tuesday, Roaming Chickens, Fed “Fear”, and Why It Takes Zero Millennials to Change a Light Bulb
We start Wednesday with Super Tuesday. Uncle Joe Biden has completed a stunning consolidation of support across the Democratic party and stopped the momentum of Senator Bernie Sanders. An NBC News poll shows that Biden won across the South in Virginia, North Caroline, and Arkansas. This would give him a lead in the delegate count. It also appears that he won in Massachusetts, Texas, Maine, and Minnesota. And although it appears that Sanders will win California, Biden came in second place and will be viable in that state (as in he will receive delegates).
Private Equity: Quadria Capital Reaches $595 Million for Second Fund
Quadria Capital, a Singapore-based private equity firm, announced it has closed its second fund. According to reports, the fund reached its maximum of $595 million. The firm plans to invest in healthcare assets across Asia, the firm said in a statement. It had initially targeted a raise of $400 million.
Artificial Intelligence: Alibaba’s AI System Detects Coronavirus With 96% Accuracy
Alibaba’s AI System detects Coronavirus with 96% Accuracy. It uses a patient’s CT scans to complete its disease recognition process in a mere 20 seconds.
Activist Manager Wants Jes Staley Off Barclays Board of Directors
Edward Bramson and his fund Sherborn Investors Management is waging a campaign to oust Jes Staley from the helm of Barclays (NYSE: BCS). According to reports, Sherborne is seeking his ouster due to Staley’s relationship with the deceased financier and convicted sex offender Jeffrey Epstein. In a letter sent to shareholders, the firm urged the board to “rescind their unanimous recommendation to re-elect Staley” as a director at its next annual shareholder meeting.
Hedge Funds: Nikola Corp. Plans to Go Public with Reserve Merger
Electric vehicle manufacturer Nikola Corp. has plans to go public and merge with a publicly traded special purpose acquisition company. That SPAC is backed by hedge fund ValueAct and Fidelity. According to reports, the firm will engage in a reverse merger with VectoIQ Acquisition Corp. (NASDAQ: VTIQ). The new company will trade under the name Nikola Corp. and carry a valuation of $3.3 billion.
Venture Capital: AI-Chipmaker Graphcore Soars To Nearly $2B Valuation
The bristol-based startup, Graphcore, which makes chips for AI, raised $150 million in a D2 round at a valuation of $1.95 billion.
Graphcore’s current valuation improves on the $1.7 billion value the chipmaker garnered in December 2018 when it raised $200 million in a D round.
Liquid Alternatives: Recharge Your Portfolio With This Battery-Themed ETF
WisdomTree has launched a battery solutions-themed ETF that trades on the London Stock Exchange.
The WisdomTree Battery Solutions UCITS ETF (LON: CHRG) comes with a total expense ratio (TER) of 0.40%.
The fund tracks the price and net dividend performance, before fees and expenses, of the WisdomTree Battery Solutions Index. This index was designed in collaboration with energy experts Wood Mackenzie.
The DailyAlts Playbook: Biden’s History Lesson, Trump Trolls in Carolina, Interest Rate Cuts, and Activist ESG Campaigns.
This morning, markets continue their rebound from last week’s brutal selloff. However, this appears to be a “technical” bounce back driven heavily by futures trading. It’s clear from the data that not many believe last week to be the last of the selloff. Markets anticipate an aggressive response to coronavirus by central banks around the globe. President Donald Trump has reportedly asked the Fed for a large cut in the wake of Australia’s 25-basis point cut on Tuesday.