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: Insight Partners To Buy Cloud Giant Veeam in $5 Billion Deal
Insight Partners announced plans to purchase Swiss data management firm Veeam Software. The private equity shop plans to purchase the company for $5 billion. Insight will make the purchase about a year after investing roughly $500 million into the firm. The private equity firm has about $20 billion in AUM and has investments in roughly 300 companies. This is a sizeable investment for Insight Partners.
Private Equity: Shoreline’s Inaugural Private Equity Fund Raises $300 Million
Private equity firm Shoreline Equity Partners, LLC began raising funds for its maiden buyout fund in March. It announced Tuesday the final closure of the fund at its hard cap of $300 million. Shoreline had set an initial target of $250 million for the fund.
Artificial Intelligence: Facebook Bans Deepfake Videos… Advocates Worry
Social media firm Facebook announced that it has banned “deepfake” videos from their platform. These altered videos – typically incorporating AI – appear that people are doing or saying something that they really did not do or say.
Hedge Funds: AQR Capital is Cutting Staff… “It’s Carnage”
AQR Capital has $186 billion under management. Its $2.1 billion Style Premia Alternative Fund lost 8.2% in 2019. And now, the company is cutting its staff for the second straight year. Bloomberg reports that the firm will cut between 5% to 10% of its staff after outflows hit the company again this year.
Artificial Intelligence: The White House Guides on the Regulatory Approach to AI
The White House on Tuesday enunciated ten principles to guide federal agencies in the development of laws and regulations addressing artificial intelligence (AI), reported The Hill.
The Memorandum issued by the White House makes it clear that the regulations are a step forward in the drive to ensure America remains a global leader in AI.
The DailyAlts Playbook – More Fund Returns, Insider Trading Codes, AI Stock Picking and Black Swans – January 9, 2020
Today, the DailyAlts Playbook talks the largest debt swell since the 70s, Black Swan babble, more hedge fund returns, insider trading codes, and AI’s shift into stock-picking.
Alternative Investments: Citigroup Will Try to Mainstream “Hedge Fund Like” Investments
Citigroup wants to bring hedge-fund-like credit investments to accredited investors. The firm is teaming up with online platform YieldStreet to bring $2 billion in assets to mass affluent investors, according to Crain’s New York Business.
Private Equity: Platinum Equity Partners Raises $10 Billion for Fifth Flagship Fund
Platinum Equity Partners has joined an exclusive group of alternative investment firms. The private equity shop has raised $10 billion for its latest fund. The firm had raised $7 billion for its Platinum Equity Capital Partners V fund by July 2019. It raised the final three with ease over the last half of the year.
NAREIT 2020 Outlook: The Future Looks Favorable for Real Estate
The NAREIT 2020 Outlook emerged this week. Calvin Schnure, Senior Vice President, Research & Economic Analysis at the National Association of Real Estate Investment Trusts (NAREIT) released his annual outlook. Let’s take a look at his high-level expectations for the year ahead.
JPMorgan: Beware the “Progressive Overhaul” of the Economy
JPMorgan manages $2.2 trillion for wealthy clients across the country. Its institutional alternative investment arm (JPMAAM) continues to grow and specialize for high-net-worth individuals. So, it’s always intriguing to hear what they are telling those clients about the year ahead.
Private Equity: Final Close of Platinum Equity Capital Partners V at $10 Billion
Platinum Equity, the private equity firm founded in 1995 by billionaire Tom Gores, announced Tuesday the close of its fifth global buyout fund with commitments totaling $10 billion.
The interest in Platinum Equity Capital Partners V can be gauged from the extent of its oversubscription – it had a target of $8 billion and a hard cap of $10 billion.
Digital Assets: The Insight Partners-Armis Deal Will Mint Millionaires by the Dozen
Venture Capital and private equity firm Insight Partners said Monday that it would acquire Israeli cybersecurity startup Armis at a valuation of $1.1 billion, said The Jerusalem Post.
Though Insight did not disclose the sale price, it will pay it in cash. Alphabet’s private equity arm, CapitalG, will participate for $100 million, while certain existing stockholders will rollover holdings.
The transaction is the biggest acquisition so far of an Israeli cybersecurity firm.
Liquid Alternatives: Europe’s First and Only Medical Cannabis UCITS ETF To Launch Next Week
Europe’s First and Only Medical Cannabis UCITS ETF To Launch Next Week. It will also be the first European ETF from Purpose Investments, the Toronto-based asset manager and ETF issuer. The Medical Cannabis and Wellness UCITS ETF (CBSX GR) will trade on Deutsche Börse’s Xetra. It is the first UCITS ETF to deliver targeted exposure to the fast-growing medical cannabis industry.
Alternative Investments: Tesla’s China Strategy Drawn From Ancient Chinese War Treatise, Says Paul Holland
Elon Musk’s bold bet to make electric vehicles in China out of Tesla’s Gigagactory 3 may be a classic military strategy according to venture capitalist Paul Holland. And it draws a leaf from the 2,500-year old tome, “Art of War,” written by Sun Tzu.
China is the world’s largest market for electric vehicles.
Chinese companies are also the potentially largest competition for Elon Musk’s Tesla in its quest for global dominance in electric vehicles.
The DailyAlts Playbook – January 8, 2020
The DailyAlts Playbook talks Elon Musk’s dance moves, a pension battle over the XFL, the latest round of hedge fund performance numbers, U.K. financial crimes, and new AI guidelines.
Digital Assets: Qatar Bans Crypto
Qatar has followed up a ban on digital asset services with another on crypto trading.
The Qatar Financial Centre (QFC) Regulatory Authority deemed last week that “virtual asset services may not be conducted in or from the QFC at this time.”
The order also banned Qataris from converting digital assets into fiat, or from exchanging one virtual asset for another. The safekeeping and administration of virtual assets or instruments enabling control over them are also banned.
Hedge Funds: In 2019, More Hedge Funds Were Shuttered Than Launched
In 2019, More Hedge Funds Were Shuttered Than Launched. 2019 was the fifth year on the trot that fund closures exceeded openings.
According to data from Hedge Fund Research, more than 4,000 hedge funds have closed shop over the past five years. The $3.2 trillion hedge fund industry is, as a result, down to less than 9,000 funds, says Chief Investment Officer.
The Private Equity Dilemma: There’s Simply Too Much Money on the Sidelines
The private equity industry has a problem. A big one. Dry powder, or uninvested cash, at private equity firms, totaled $1.45 billion at the end of 2019.
Mercer Outlook 2020: Europe Could Face Problems
The Mercer 2020 outlook came out in January. The firm expects growth to pick up somewhat in 2020, both in the United States and the rest of the world.
Hedge Funds: Neil Woodford and Craig Newman Did Just Fine Before Woodford Collapse
Neil Woodford and his CEO Craig Newman earned 9 million and 4.8 million pounds in dividends in the year leading up to the collapse of Woodford Investment Management.
Don Steinbrugge: Low Rates to Push Pensions into Hedge Funds
Don Steinbrugge of Agecroft Partners released his annual list of hedge fund trends and predictions for 2020. He covers a few common bases: Hedge fund assets will set a new record, a reduction in expected returns, and how long-short specialty funds will see a boost to AUM.
Alternative Investments: Battered Marijuana Stocks May Bottom Out in 2020
The brutal sell-off in marijuana stocks in 2019 has been likened to “2008 for the cannabis industry.” Others compared it to the blowout in tech stocks in 2000. Apart from the historical comparisons, what must be especially painful for pot stock investors in 2019 would be the solid returns given off by the rest of the stock market. However, according to hedge fund manager Will Meade, who is also a former Goldman Sachs analyst, 2020 presents a buying opportunity in a sector that is possibly bottoming out.
ESG and Sustainability: HSBC Bandwagons ESG, To Launch Eight ETFs
HSBC Gam plans to launch eight new environmental, social, and governance (ESG) ETF’s in the first half of 2020. Also planned are a fixed-income ETF platform and a passive platform for precious metals later in the year. HSBC Gam will also create 15 new roles to support its new business initiatives.
Hedge Funds: The 2020 Top Picks of Andrew Left’s Citron Capital (First Year Gain 43.3%)
Famed short-seller Andrew Left’s Citron Capital published its Annual Investor Letter for 2019 on Monday.
“In 2019, our first full year of operation, Citron Capital, LP generated a gross return of 56.4% and net return of 43.3%,” wrote Left. “The Fund’s average exposure during 2019 was 75.8% long and 80.3% short.”