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.
Top Story
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.
Get Daily Updates
Subscribe to DailyAlts Today to get Alternative Investment news, insight, and commentary delivered straight to your inbox every day.
More Stories on News
Japanese Regional Banks: The Trade to Start 2020
Japanese regional banks are starting to look for new capital as it becomes increasingly challenging to grow in a low-interest-rate environment.
In a move similar to what we saw happen in the United States back in 2010. The regional banks tend to be located outside the major population centers and have been dealing with a demographic issue as the population ages and declines. They also face problems with the rising costs of technology and cybersecurity, like those driving U.S.-based consolidation.
Artificial Intelligence: Accenture Study Says Banks Could Save $70 Billion Using AI
The financial industry, including banks, could save hundreds of billions of dollars using automation and AI.
Accenture’s report issued last week says North American banks could save more than $70 billion by 2025. The whole financial services industry could cut costs by $87 billion to $140 billion by 2025. AI and automation could be deployed to help or replace employees.
By 2025, 7% to 10% of tasks will get automated, the report estimates. These tasks include those performed by loan officers, personal financial advisers, tellers, and customer service representatives.
ESG & Sustainability: US Companies Bled $500 Billion From ESG Scandals
The Bank of America analyzed 24 scandals relating to accounting, data breaches, sexual harassment, and other ESG issues concerning companies in the S&P 500 index. It found that over the past five years, these issues, emanating from environmental, social, and governance (ESG) practices, cost the affected companies $534 billion in value.
Hedge Funds: Why Some Singapore Hedge Funds are Hitting It Out Of The Park
Some of 2019’s best performing hedge funds are based out of Singapore.
Chong Chin Eai’s Vanda Global Fund is up over 300% this year. He started his hedge fund in Singapore with $24 million from friends and family but now runs $222 million. Annualized returns are 39%, though volatility is a stomach-churning 72%.
What’s interesting is that you couldn’t get a leaner hedge fund than Vanda.
Artificial Intelligence: AI May Put the Finishing Touches to Beethoven’s Tenth
A year of celebrating Beethoven’s 250th birthday starts today.
The celebrations begin today in Bonn with the inauguration of Beethoven’s home as a museum after extensive renovations. This 250th year of Beethoven’s birth may be notable also in the annals of artificial intelligence (AI). That’s because machine learning algorithms will try to write the final notes of the legendary composer’s unfinished 10th symphony.
Private Equity: Global Infrastructure Partners to Invest $3 Billion in Indonesia
According to Indonesia’s Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, private equity fund Global Infrastructure Partners (GIP) could invest up to $ 3 billion in the country. He said GIP was interested in investing in three projects, and that the Indonesian President had given his green signal, according to TheJakartaPost.
Luhut added that President Joko “Jokowi” Widodo was favourably disposed to the investment because former World Bank President Jim Yong-kim, currently heading GIP, was a good friend.
Digital Assets: solarisBank to Provide Custody Services Through New Subsidiary
The new company is one more initiative by solarisBank, the tech company with a banking license, in the digital world. It follows up on solarisBank’s 2018 launch in 2018 of the solarisBank Blockchain Factory. solaris Digital Assets GmbH, the 100% subsidiary will provide an API-accessible platform for the proposed custody solution for digital assets
Alternative Investments: Private Debt a New Safe Harbour for the Superrich
As low or negative rates bite, family offices invest more and more in private debt.
Wealthy individuals and family offices are lending money where banks fear to tread. Gone are the days when high net worth investors could rely on traditional investments to preserve the value of their nest egg for their families and descendants. Enter: private debt.
Artificial Intelligence: Why Wall Street Jobs Are Vulnerable to AI
A Wells Fargo report said robots would take away 200,000 banking jobs in the next decade. What about trading and advisory jobs on Wall Street?
The House Financial Services Committee’s Task Force on Artificial Intelligence met last week to consider the impact of AI on Wall Street jobs.
Digital Assets: Dutch Bank ING to Provide Safe Custody for Digital Assets
ING is working to develop safe custody technology for cryptocurrencies and other digital assets. The $980 billion bank will address a major problem that deters institutions and other high net worth entities from dabbling in the digital assets market: secure and compliant custody of these assets.
Though ING’s project is still in a nascent stage, it is one of several initiatives by the bank in the digital asset space, such as in blockchain.
In Focus: The Meteoric Rise of Ken Griffin’s Citadel Securities
Kenneth Griffin’s wealth is usually identified with his hedge fund. The flagship Wellington fund is up 16.7% this year through November. According to a Bloomberg story, Griffin made $ 870 million from Citadel LP, his hedge fund operations, in 2018. This is not an inconsequential sum by any standards.
What is not so well known, however, is the profitability of Citadel Securities, Griffin’s market-making business. This firm earned $5.7 billion in gross revenue in 2018, and EBITDA of $2.2 billion. Griffin is said to own 75% or more of both businesses.
Real Estate: Broadstone Net Lease IPO in 2020 Could Be $600 Million
The Broadstone Net Lease IPO in 2020 Could Be $600 Million. It has enlisted Goldman Sachs and JP Morgan for the IPO.
Bank of America: ETF Assets to Go 10X, Hit $50 Trillion in 10 Years
ETF assets could hit $50 trillion by 2030, a figure that is more than ten times current levels, according to Bank of America. The bank also said this week that these assets may hit $5.3 trillion by the end of 2020 (Note: total assets are $4.3 trillion as of this publication date).
The Domino Effect From This Chinese Bond Default
Mutual funds bleed after Peking University Founder Group Co.’s bond default.
Peking University Founder Group Co.’s bonds crashed by 70% the day after the Founder Group defaulted on a 2 billion yuan ($285 million) bond.
The Founder Group is a high tech Chinese industry and investment conglomerate with interests in everything from finance, real estate, healthcare, to commodity trading and IT services. It is 70% owned by the state-owned Peking University.
The value of other Founder Group bonds also slumped as the fear spread.
Another Day, Another Hedge Fund Plans to Return Investor Capital
Everett Capital Advisors will return capital to investors, according to a new report from Bloomberg. The hedge fund of Kelly Hampaul had a rather solid run. Founded in 2015, the event-driven fund started with $140 million in assets. That figure later ballooned to about $600 million, according to the report.
Digital Assets: Jay Clayton – SEC Hastens Slowly on Digital Assets
Jay Clayton said in testimony to the Senate that the SEC was taking a measured approach to regulation of digital assets.
Jay Clayton was very positive on the prospects of distributed ledger technology, or the blockchain, in his testimony to the Senate. He also stated that the SEC was a “measured approach” to regulation of digital assets.
Activist Updates: 27 Jobs Lost in Countdown to Icahn’s Miami Move
Billionaire activist investor Carl Icahn is moving to Miami in a bid to lower his tax bill. As previously reported, Icahn will relocate to Miami by March 31, and any employees unwilling to move with him would be laid-off. It’s crunch time, and it appears that 27 employees have opted for the Big Apple over Magic City.
Activist Updates: Starboard is Aboard Mednax; Wants Co’s Sale, Board Seats
Activist Investor Starboard Value LP, which owns a stake in Mednax Inc., has proposed a majority slate of directors in the latter.
According to a report in The Wall Street Journal, Mednax, a $2.1 billionhealthcare service provider, is under pressure from Starboard Value LP to sell all or a part of itself.
Mednax had a nomination deadline for its board a few days ago, and Starboard is said to have submitted its nominees for board seats.
Informed sources told the WSJ that the two sides are holding negotiations over the composition of the board. Should these not conclude amicably, Starboard may take its battle to the shareholders at the next annual meeting.
Artificial Intelligence (AI) Improves MRI Detection of ADHD
Deep learning, a kind of AI applied on MRI scans improved ADHD detection significantly.
The University of Cincinnati College of Medicine and Cincinnati Children’s Hospital have developed an AI system to help detect ADHD.
Digital Assets: Its Halving in 2020 Could Boost Bitcoin to $50,000
Bitcoin’s halving in April/May 2020 could trigger a bull run in the cryptocurrency.
At least two analysts say that bitcoin’s halving in 2020 could eventually lead to prices in the range of $ 50,000.
New BDO Report Shows VC and Private Equity Preparing for Downturn
A new BDOreport U.S. Private Capital Outlook explores the preparations of venture capital and private equity firms ahead of a projected downturn. The report replaces and expands on BDO’s report, Private Equity Perspective Survey.
Private Equity: Nobody Thought What Nancy Pelosi’s Drug Price Plan Would Do To Small Biotechs
With all the drama around Pelosi’s proposed drug pricing plan focused on the large pharma companies, nobody thought of the small guy.
In fact, small biotechs are responsible for 7 out of 10 clinical trials, as per data from Biotechnology Innovation Organization (BIO), a biotech trade association. The drug pricing under Pelosi’s plan would drive investors away from the small biotech companies.
Alternative Investments: Japanese Economic Growth Surprises to the Upside – ETFs to Pick
Japanese economic growth during the third quarter of 2019 surpassed both preliminary and market forecasts.
Japan’s GDP growth during the third quarter of 2019 came in at an annualized 1.8%. This rate was much higher than the preliminary forecast of 0.2% annualized. It also breezed past analysts’ estimates of 0.7% growth. Moreover, it was the economy’s fourth consecutive quarter of positive growth. Should investors consider investing in Japan via Japan-focused ETFs?
Mednax Faces Activist Pressure from Hedge Fund Starboard Value
Mednax, a healthcare service provider, is facing activist demands from Starboard Value. The hedge fund is reportedly seeking a complete or partial sale of the company. The Journal says that Starboard has nominated a full slate of nominees for the company’s board of directors.