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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Hedge Funds: Starboard Value Pressures for Changes at eBay, Deal at Green Dot
Starboard Value is pushing for eBay (NASDAQ: EBAY) to sell or spin off its Classifieds Group. The hedge fund took a stake in the company one year ago beside fellow activist Elliott Management. Both firms have pushed for spending cuts and the divestiture of assets like online ticket marketplace StubHub.
Artificial Intelligence: How to Invest in The Next Big Thing
Buy a piece of the looming tsunami of growth in the AI market by investing today. Artificial intelligence, or AI, is the fourth industrial revolution. The steam engine heralded the first industrial revolution, the second was mass manufacturing through electricity, and the third was computers. According to data from Fortune Business Insights, the size of the global AI market may grow to $202.6 billion by 2026, up from $20.7 billion in 2018. (USA Today)
Liquid Alternatives: The First Trust Merger Arbitrage ETF Will Skim Merger Spreads
The First Trust Merger Arbitrage ETF Will Skim Merger Spreads. It’s a hedge fund type, actively managed ETF. But don’t balk at its fees.
Digital Assets: Israeli CyberSecurity Firm GK8 Dares Hackers With $250K Bounty
GK8 has dared hackers to burgle a bounty of $125K stored in a cold wallet, with the promise of another payout of a $125K bonus. The first person to crack the GK8 system could, therefore, earn about 28 bitcoin for their efforts. GK8 promises unhackable custody for crypto-assets that is NEVER connected to the Internet.
DailyAlts Playbook: The Iowa “Circus”, Coronavirus Warnings, the “Succession” Drama in South Korea, Tepper’s Market Temperament, and a Busy Day for Activists
The morning, we start in Iowa.
For years, political analysts have asked why Iowa should be the first voice in the primary season.
Last night, Iowa proved it shouldn’t play this role ever again.
A mind-bending caucus process led to irregularities all across the state. Vote confirmation stalled.
Private Equity: Blackstone Tactical Opportunities Announces $1.4 Billion Final Close of Phoenix Tower International Project
Blackstone Tactical Opportunities funds completed the recapitalization of Phoenix Tower International. The deal will allow the wireless communications infrastructure provider to execute on its global infrastructure business plan.. Tac Opps has now raised $1.4 billion of dedicated capital for PTI.
Alternative Investments: Pacific Premier Bancorp Buys Opus Bank
Pacific Premier Bancorp (NASDAQ: PPBI), the holding company of Pacific Premier Bank, announced plans to purchase and Opus Bank (NASDAQ: OPB). Terms of the deal set the value at about $1.0 billion, or $26.82 per share. Pacific Premier expects the transaction to be 14% accretive to EPS in 2021 with a 1.8-year earn back period to tangible book value per share based. Opus is headquartered in Irvine, California with $8.0 billion in total assets, $5.9 billion in gross loans and $6.5 billion in total deposits as of December 31, 2019.
Digital Assets: Bitcoin Preparing For Explosive Upside
Bitcoin in bullish setup and Bakkt futures OI at an ATH
The BTCUSD daily chart above shows a very bullish setup for the cryptocurrency. When taken with the blast-off in the open interest in Bakkt’s physically-settled Bitcoin futures market, and the continuing surge in volumes of the CME cash-settled futures contract, there is every likelihood of an explosive move higher.
Real Estate: IIPR Announces Sale-Leaseback Deal with Green Thumb Industries
Innovative Industrial Properties (IIPR) has announced a sales-leaseback deal with Green Thumb Industries (GTBIF). The $2.9 million deal is for a licensed cannabis processing facility in Toledo, Ohio.
Liquid Alternatives: UK Investors Can Now Get Their Hands On First Trust’s US Capital Strength Strategy
First Trust launches a highly successful US strategy for UK investors. The First Trust Capital Strength UCITS ETF (FTCS) will replicate one that swept up $1.5 billion in inflows in the US.
“Over the last twenty-five years in times of market instability, quality and less volatile US equities have historically outperformed the S&P 500 index in down months by 74% and 85% respectively,” said Gregg Guerin, senior product specialist at First Trust. “We are pleased to bring this rules-based strategy to market and believe FTCS offers advisers and wealth managers the potential for protecting in negative markets while participating in increasing markets.”
Liquid Alts: China Urges Funds to Avoid Selling Shares
Chinese mutual funds are facing new regulatory scrutiny in the face of a sharp selloff Monday. During the first day since the Lunar New Year holiday, the Shanghai Index fell by 7%. Chinese officials are doing everything they can to prevent a sharper decline.
Digital Assets: South Korea’s Rethink on its CBDC Strategy
South Korea is scrambling to make up for the lost time in the global moves towards central bank developed digital currencies. It now intends to constitute a new research team for the very same purpose, according to cryptonews.
Last year, it demobilized a research task force it had constituted for digital and cryptocurrencies. The ostensible reason given at the time was that South Korea had no intention of issuing a central bank digital currency (CBDC): “There is no plan to issue a CBDC in the near future because CBDC is no incentive to respond to the reduction of cash use or to increase financial inclusion.” (translated)
What seems to be the cause of the rethink by the central Bank of Korea on CBDC?
Venture Capital: Saudi Investment Firm Participates in Electric Air Taxi Startup Funding
Jameel Investment Management Company invests in Joby Aviation. California-based Joby Aviation, an electric air taxi startup founded in 2009, raised $590 million in a Series C fundraising. The round was led by Toyota Motor Company, with participation by Baillie Gifford, according to Arabian Business. Jameel Investment Management Company, an investment arm of Saudi family business…
The DailyAlts Playbook: All Quiet on the Brexit Front. China’s Economy Takes Another Hit. And Nine More Months of Election Season
The morning, we start in China, where a massive selloff hit the Shanghai Index during the market’s first day back from the Lunar New Year celebration. The Index fell by 7.7% as the spread of the coronavirus shatters sentiment. Investors ignored positive data showing that manufacturing activity increased during January.
ESG: Trillium CIO: We’re Selling to Australia’s Perpetual
Trillium Asset Management CIO John Quealy says that his firm is selling itself to Perpetual. Trillium is a Boston-based ESG equity and fixed-income manager that launched in 1982. Perpetual has been around since 1886 and is one of the oldest financial firms in Australia.
Private Equity: KKR Reports Q4 Earnings
The KKR earnings report arrived this week. The alternative investment giant said that assets, fees and book value all grew by double digits in 2019. Revenues for the quarter ending December 31, 2019, were $1.06 billion compared to $(178.1) million for the same period in 2019. Revenues for all of 2019 were $4.22 billion compared to $2.39 billion in 2018.
FinTech: Online Insurance Marketplace and Insurtech Policygenius Raises $100 Million
Policygenius, an online marketplace for comparing and buying insurance products, announced the successful raising of $100 million via its Series D funding round.
Jennifer Fitzgerald and Francois de Lame founded Policygenius in 2014. Its digital platform connects consumers with reputed insurance carriers. It is the fastest growing life insurance distributor, having issued $45 billion in life cover till date. Policygenius has grown annualized revenues to $60 million, a 10 times increase since 2017 and the culmination of its C Round Funding.
Digital Assets: Bitfinex Launches Margin Trading for Tether Gold (XAUt)
Bitfinex, the Hong Kong-based crypto exchange, commenced margin trading for Tether Gold with US dollar (XAU₮/USD), tether (XAU₮/USD₮), and bitcoin (XAU₮/BTC) on Thursday at 2:00 PM UTC.
This follows the listing of Tether Gold (XAU₮), a stablecoin backed by physical gold. Trading in XAU₮ commenced on January 24 at 2:30 PM UTC. One token represents ownership of one troy fine ounce of physical gold, held in a Swiss vault with TG Commodities.
Liquid Alternatives: Short the Pandemic! Buy an Inverse China ETF
As the Chinese coronavirus endemic gathers momentum, gloom and doom prognostications on the Chinese economy are quickly out of the gate. Short the Pandemic! Buy an Inverse China ETF. It’s a no-brainer that the Chinese economy, hence Chinese stocks, will take a hit from the coronavirus. And certain ETF’s reflected investors’ sentiments.
Venture Capital: Why Traditional VCs Avoid Startups in Defense and Aerospace
Brian Schettler, the head of Boeing’s HorizonX venture fund, talks to DefenseNews.
Boeing’s HorizonX venture fund has invested across 25 companies. Each investment is less than $10 million, and the cumulative amount would be small when juxtaposed against the sums deployed by traditional VC firms in commercial ventures (not defense or aerospace).
Speaking to DefenseNews, Schettler provided interesting insights on why traditional VCs are giving the cold shoulder to startups in defense and aero.
Artificial Intelligence: Lt. Gen. Jack Shanahan, Pentagon’s AI Chief to Retire
The Pentagon is due to announce today the retirement in summer of Lt Gen Jack Shanahan, the first Director of the Pentagon’s Joint Artificial Intelligence Centre (JAIC), says C4ISRNET.
In this position, Shanahan has been responsible for accelerating the delivery of artificial intelligence-enabled capabilities, scaling the department-wide impact of AI and synchronizing AI activities to expand joint force advantages.
The DailyAlts Playbook – Dan Loeb’s Love of Soup, His Distaste for the SEC, Brexit Bargaining, Bernie’s Big Move, and Dalio’s Take on Coronavirus
We start today with the arrival of a new Europe. The United Kingdom will depart the European Union tonight after a long, drawn-out process dating back to a stunning 2016 referendum. Earlier this week, Nigel Farage conducted his victory lap while the British delegation laughed before the EU. The display concluded with the waving of tiny British flags. That final display caused EU officials to cut off Farage’s microphone.
Private Equity: Unigestion Boosts New Fund, Aviva Investors Launches High Yield Fund
Unigestion, a Swiss-based PE firm, has launched a new Luxembourg-domiciled fund. Its Unigestion Secondary V will focus on secondary opportunities and deals below 50 million euros. “Unigestion follows a rigorous due diligence process, applying a bottom-up evaluation of every single portfolio company which includes detailed financial modeling, interviews with senior company management and debt analysis,” the firm said in a statement.
Private Equity: Apollo Global Management Reports Earnings
Apollo Global Management earnings arrived this morning. Apollo reported fee-related earnings of $0.59 per share for the quarter and $2.19 per share for the full year. That is a gain of 17% over 2018. The demand for private equity and private credit firms has been exceptionally strong thanks to extended stock prices and low-interest rates and Apollo was well-positioned to benefit.