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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Digital Assets: James Altucher’s 2020 Bitcoin Prediction Will Miss by More Than $992,000
James Altucher is best known for his hedge fund, his Choose Yourself messaging, his iconic hair, and an ultra-bullish stance on Bitcoin. The former hedge fund manager’s crypto-newsletter advertisements also followed readers around the internet.
Digital Assets: Crypto Hedge Funds Shuttered in 2019 At a Stunning Pace
Crypto hedge funds shuttered at a rather alarming click in 2019. According to Crypto Fund Research, 70 such funds had closed by early December. That means there was still time for another few of these funds to close as the month comes to a close.
Alternative Investments: Decline in IPOs Worldwide as Investors Prefer Private Markets
There is a striking decline in the number and value of Initial Public Offerings (IPOs) to raise capital across the globe. Macro-economic and political factors such as trade wars, Brexit, and growth fears played a role in this trend, says the FT.
But there is also concern that increasingly, both issuers and investors may be gravitating to private markets.
Liquid Alternatives: Franklin Templeton Launches FLSP, its First Alternative ETF
Franklin Templeton added a new active fund to its ETF range. The Franklin Liberty Systematic Style Premia ETF (FLSP) is an alternative ETF that is actively risk-managed, seeking a target annualized volatility of 8 percent, and targets four style factors: quality, value, momentum and carry.
The FLSP fund seeks to deliver absolute return (positive returns in rising or falling markets) by employing a multi-asset, long/short strategy.
Hedge Funds: Investors Looking to Bail? The SS&C GlobeOp Forward Redemption Indicator is at a 12-Month High
The SS&C GlobeOp Forward Redemption Indicator for December is up marginally from last month.
Simply put, the SS&C GlobeOp Forward Redemption Indicator shows how much investors are looking to bail from their hedge fund investments. For December 2019, the indicator read 4.95%, up from 4.81% in November.
The indicator represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp on the SS&C GlobeOp platform, divided by the Assets under Administration (AuA) at the beginning of the month for SS&C GlobeOp fund administration clients on the SS&C GlobeOp platform.
Digital Assets: Singapore’s MXC Exchange to Launch Leveraged Crypto ETFs
Singapore’s MXC Exchange to Launch Leveraged Crypto ETFs. It announced December 28 the launch of its range of leveraged ETFs based on cryptocurrencies BTC, ETH and EOS. These ETFs are available for both long and short plays. The ETF products will “help users magnify their returns.”
Venture Capital: Octopus Sells Stake in Zynstra for £100 Million
Octopus Ventures, a VC firm based in London, has sold its stake in virtualization tech firm Zynstra. Reports state that the deal was worth £100 million and the buyer is NCR.
Venture Capital: WeWork Golden Parachutes Are Very, Very Golden for Executives
The WeWork golden parachutes emerged from company documents over the weekend. Earlier this fall, the real estate firm received a bailout from SoftBank. The Financial Times recently gained access to company documents on negotiated exit packages before the cash infusion.
Hedge Funds: Josh Samuelson to Retire from PointState Capital
Josh Samuelson is departing PointState Capital, the firm he co-founded. According to a letter from co-founder Zach Schrieber, Samuelson “has decided to retire from investment management.” The manager plans to stay at the hedge fund for “several months” while leadership changes.
Baidu Tops Google and Microsoft in Artificial Intelligence Competition
Baidu Artificial Intelligence has overtaken two of the world’s leaders in the industry. The Chinese tech giant topped Microsoft and Google in a recent artificial intelligence competition.
Private Equity: KKR Buys Overdrive in Latest Digital Media Push
Private equity investor KKR will purchase OverDrive Inc in a deal that will alter the future of digital reading. The Rakuten subsidiary is a widely used digital reading platform in schools and libraries. The firms did not disclose the deal terms. However, this could be a significant win for Rakuten, which purchased OverDrive for $410…
Hedge Funds Record Best Year Since 2013, But Departures Loom
Hedge fund returns in 2019 averaged 8.5% but fell well short of the broader market rally. Heading into Monday, the S&P 500 has gained 29.1%. HFR says that the firm reached 8.5%, a figure that was even well short of the U.S. Bond Market’s gain of 14.5%.
Digital Assets: Swiss President Says That Facebook’s Libra Has Failed
Switzerland president Ueli Maurer took a swipe at the Facebook Libra project as he prepares to walk out the door. The nation’s finance minister and the outgoing president called for a reworking of the cryptocurrency project.
Kennedy Wilson Raises $775 Millon for New Real Estate Fund
Kennedy Wilson has locked up $775 million for a new fund. The Beverly Hills-based firm closed fundraising of the Kennedy Wilson Real Estate Fund. The real estate investment firm’s new fund will focus on value-add real estate investments, according to the Los Angeles Business Journal.
Venture Capital Firms Look for ClassPass to Hit $1 Billion Valuation
ClassPass could hit a $1 billion valuation, according to Reuters. A new report reveals that the fitness subscription app aims to raise another $285 million.
First Eagle Investment Management to Purchase THL Credit
First Eagle Investment Management with acquire THL Credit, an alternative credit manager with approximately $17 billion in assets under management. The deal will likely close in the first quarter, according to a joint press release.
Digital Assets: The YouTube-Vs.-Crypto Standoff Ends Happily Ever After
YouTube pushed crypto-channel owners into hiding. Now its admitted to an error. It will reinstate videos and resolve strikes.
Alternative Investments: America’s Student Loan Debt in 2019 Hits New Record
A college degree is no longer a tool; it’s a luxury available to the rich
About 45 million people in the US are being crushed under the weight of federal student loans. A third of this number are millennials in the age group from 25 to 35 years.
Outstanding Federal student loans are now perched at a gasp-worthy $1.5 trillion, the highest level ever. They now aggregate 8% of the US national income, according to the FT.
Private Equity: KKR Earns 5X on Divestment of Locomotive Leasing Company
Infrastructure investments can deliver solid returns judging from private equity giant KKR’s sale of European Locomotive Leasing (ELL) last week. ELL is a leading provider of electric locomotive leasing solutions across Europe. The buyer was a consortium of AXA Investment Managers – Real Assets, acting on behalf of its clients, and Crédit Agricole Assurances.
Digital Assets: Chinese Stock Exchange Sets Up Blockchain Index
China’s tech-heavy bourse, the Shenzen Stock Exchange, announced December 24 its introduction of an index to track the performance of China’s top 50 blockchain companies including startups.
According to a report in CrowdFundInsider, the Shenzen Stock Exchange will include in the index those firms that are active in Distributed Ledger Technology (DLT) and crypto industries.
Alternative Investments: Now, BlackRock, Temasek in Chinese Wealth Management JV
Global asset manager BlackRock and sovereign wealth fund Temasek are making a beeline for the vast opportunities opening up in the Land of the Red Dragon. Chinese regulations now allow foreign entities to own a majority stake in a wealth management joint venture operating in China. The two behemoths will tie-up with China Construction Bank (CCB), according to Reuters.
Alberta Investment Management Joins KKR in Canadian Pipeline Deal
Alberta Investment Management is linking up with private equity giant KKR to purchase a big stake in TC Energy’s Coastal GasLink Pipeline. The Canadian pipeline project is part of a massive, C$40 billion effort to pump natural gas across British Columbia. The project will supply LNG from Dawson Creek to the plant near Kitimat. The project will pump about 2.1 billion cubic feet of natural gas each day.
Alternative Investments: Christmas Cheer as Fund Managers Cut Fees
In the ongoing ‘race-to-zero,’ Vanguard and Dimensional both cut fees this week.
Vanguard lowered expense ratios on three international income-oriented funds and four externally managed equity funds on December 19. For good measure, on December 24, the fund house followed that up with another reduction in fees on nine stock and bond ETFs and two active funds. Dimensional, too, added to the Christmas cheer with its own fee reductions.
Alternative Investments: Chinese Corporate Defaults Touch Record in 2019
As 2019 grinds to a close, Chinese corporate defaults surged to a record RMB 130 billion ($18.6 billion).
According to FT, which cited Bloomberg data, this value eclipsed the previous record of Rmb122bn last year.
The main cause appears to be corporate distress stemming from declining economic growth in China.