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Elon Musk’s artificial intelligence startup, xAI, aims to secure $1 billion in equity financing to compete with industry leaders such as OpenAI, Microsoft, and Google. The company, co-founded by Musk, has already garnered $135 million from investors, as revealed in a filing with the US Securities and Exchange Commission.
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Investors Pulling Money from Hedge Fund Solus Alternative Asset Management
Solus Alternative Asset Management faces a second straight year of high redemption levels. The distressed debt specialist has struggled due to bad investments in firms like Pacific Gas & Electric and Intelsat. According to the Financial Times, the hedge fund’s flagship fund has dropped by 9% this year. In 2018, the fund fell by 15%.
Pershing Square 13-F: Ackman’s Hedge Fund Buys Agilent Technologies
The Pershing Square 13-F filed in November has revealed Bill Ackman’s latest stake. According to the SEC filing, Ackman’s hedge fund has scooped up a 2.9 million-share stake in Agilent Technologies. The firm specializes in laboratory instruments and software.
Five Star Funds Launches Hedge Fund to Focus on Vegas, Baby
Five Star Funds announced it would create the Flamingo All Weather Fund, a new fund aimed to capitalize on favorable economic conditions in Las Vegas.
Alexion Pharmaceuticals Rejects Elliott Demand for “Proactive Sale”
Alexion Pharmaceuticals will not obey Elliott Management’s demand for a “proactive sale.” The company says that the process of seeking a buyer doesn’t suit shareholder interest. The biotech firm has worked to maintain control of its market share for drugs treating rare blood disorders. Following news that it would not engage in a sales process, the firm’s stock popped on Friday.
Steve Cohen Looks to Boost Stake As MLB Team Owner
As uber-rich private equity and hedge fund billionaires are homing in on sports franchises, Steve Cohen is negotiating to up his current 8% stake in the Mets to 80%. Cohen paid $20 million for that stake in 2012.
Pershing Square Capital Boosts Stake In Howard Hughes
Pershing Square Capital Management has increased its stake in Howard Hughes Corp., according to an S-4 filing with the SEC. Activist hedge fund manager Bill Ackman and his firm announced the increase on Wednesday.
Mark Wiseman Out at BlackRock
Mark Wiseman found himself in the running to replace BlackRock Chief Larry Fink. Now he finds himself out of a job. Multiple media outlets report that Wiseman allegedly violated BlackRock’s “relationships at work policy.”
CalPERS Fires External Equity Managers For Long-Term Underperformance
CalPERS, the largest pension system in the US, just took a scalpel to funds allocated to external equity managers.
In a major restructuring of its investment process, CalPERS slashed allocations to external equity managers from $33.6 million to $5.5 million. Only three out of 17 external managers survived the purge, according to an exclusive report by Chief Investment Officer.
Further, the pension fund restructured its emerging managers’ program, docking its allocation from $3.6 billion to just $500 million. Only one out of the five emerging managers stayed on.
Natixis Investment Managers Survey Shows Shift To Private Investments
Natixis Investment Managers has released the results of its survey of investment managers this week.
Natixis surveyed 500 institutional investors, who collectively manage more than $15 trillion in assets. These respondents manage money for pensions, insurers, sovereign wealth funds, foundations and endowments all over the world. The survey measures the investment community’s outlook and concerns for the next year. The key finding in the report is that increased volatility is the top portfolio concern of many investment managers. Most managers see no relief in sight from trade and low yield risks.
Another High-Level Exit, and Job Cuts, At Scandal-Rocked GAM Holding
No respite for GAM Holding as it weighs a 40% cut in its workforce and the departure of its Head of Investments.
GAM Holding announced Monday the departure of Matthew Beesley, group head of investments, with effect from the second quarter of 2020.
Private Equity Giant Carlyle Group’s Latest Windfall: SBI Cards
The SBI Cards IPO will be the largest public offering in India this year. On November 27, the company filed its draft prospectus but failed to provide any valuation insight. No matter for one of the biggest winners in this deal – which could raise $1.25 billion: Private equity giant Carlyle Group.
Robinhood Drops Plans to Become A Bank; Withdraws Application
Robinhood, the pioneering zero commission stockbroker, has put banking ambitions on the backburner.
Robinhood withdrew its bank charter application to launch a federally insured bank. It had filed an application with the Office of the Comptroller of the Currency on April 19, 2019.
Private Equity Firm Warburg Pincus to Raise $1.5 Billion India-Focused Fund
An India-focused private equity fund is coming to the markets. PE s Warburg Pincus announced plans to raise $1.5 billion for its first fund centered around India. Reuters reported that the company is bullish about opportunities in the country.
Real Estate Private Equity Firm Raises $540.8 Million
Green Courte Partners specializes in niche real estate investing.
Think airport parking. Leased land communities. Senior housing. Green Courte Partners is a private equity real estate investment firm that builds top-flight companies operating within special, niche real estate sectors. Green Courte Partners has just closed its fifth investment fund, Green Courte Real Estate Partners V, LLC (“GCREP V”), with total capital commitments of $540.8 million.
Pensions Jack Up Exposure to Alternative Investments
Interest rates have been declining since the financial crisis and the resultant falling investment returns have put pension funds under pressure. Pension funds turn to alternative investments to offset the chronic low rates regime.
Maxine Waters Takes On The Private Equity Industry
Last week, U.S. House Financial Services Committee Chair Maxine Waters held a hearing to discuss private equity firms and their role in society.
Hedge Fund Stone Milliner Asset Management Will Shutter
Macro hedge fund Stone Milliner Asset Management is closing its doors. The company announced it would return capital to investors in the face of weak performance and ongoing outflows.
Here’s What Private Equity Giant Blackstone Group is Doing With It’s Money
Blackstone Group investments are always an interesting subject. The private equity and alternative asset management behemoth Blackstone has had a very successful fundraising year in 2019.
JP Morgan Will Use Blockchain to Monitor Dealers’ Financed Car Inventory
Error (or fraud-) prone recording of auto inventory will be a thing of the past after JP Morgan implements blockchain.
Wholesale car financing at JP Morgan will get a lot easier after the bank puts auto dealers’ floorplan lending onto a distributed ledger, or private blockchain.
Floorplan lending refers to the revolving line of credit provided by a bank against the collateral of vehicles forming a dealer’s unsold inventory.
London Stock Exchange and PrimaryBid To Democratize Public Equity Offerings
The London Stock Exchange (LSE) has tied-up with fintech PrimaryBid to give retail investors access to share offerings. PrimaryBid’s internet-based investment platform will allow retail investors to digitally access share offerings on the same terms (read: discounts) as institutions.
Investors Concerned About Executive Compensation: Report From Farient Advisors
Engaged investors continue to be concerned about climate change, gender adversity, and pay equality, says a report from Farient Advisors and the Global Governance and Executive Compensation Group. Investors are perturbed about the disconnect between executive performance and ever-escalating compensation.
Charles Schwab Looks to Purchase TD Ameritrade
Charles Schwab and TD Ameritrade could merge, according to CNBC’s Becky Quick. News of a possible deal dropped on Thursday morning.
Bill Gates-backed Startup Announces Clean Energy Breakthrough
Heliogen, a startup backed by Bill Gates, announced a breakthrough solar energy technology that could be a boon for heavy industry. Heliogen uses artificial intelligence and mirrors to reflect and concentrate sunlight to generate ultra-high temperatures. Said to be The Holy Grail of clean energy, it generates no emissions and is cheaper than fossil fuels.
Activist Carl Icahn Is Shorting Mall Owners – Should You?
Activist Carl Icahn has taken another big bet against a sector. This time, the hedge fund manager is targeting mall operators. Icahn could earn $400 million or more if mall operators start to face debt problems. According to the Wall Street Journal and its sources, Icahn likely holds the largest short position against these companies.