June, 2024

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When is the Mean Reversion Coming in the Stock Market?

A Wealth of Common Sense

I posted the following on Twitter this week: It’s turning into another banner year for the U.S. stock market (so far). Here’s a good follow-up question on these numbers: This is a legitimate concern. Since 2020 the S&P 500 has compounded at more than 14% per year. That’s not just a pandemic phenomenon either. Since the start of 2009, the S&P 500 has seen returns of 14.5% per year.

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You Can Outperform 88% of Professional Fund Managers by Using This Simple Investment Strategy

The Motley Fool

Professional fund managers are in charge of investing billions of dollars for investors. They're often highly educated, have years of investment experience, and get paid well for their skills and expertise. But the truth is most aren't worth the fees they charge. It doesn't take an advanced degree or special insider knowledge to do better than the vast majority of actively-managed mutual funds.

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Seattle Redux: Misunderstanding Seasonal Adjustments

The Big Picture

@TBPInvictus here. About a decade or so ago, the city of Seattle undertook to raise its minimum wage, over time, to $15/hour. (Massive credit to my friend Nick Hanauer for his efforts to make that happen.) What followed in the immediate aftermath of both the announcement and implementation was nothing less than a apocalyptic, collective head explosion on the right about the devastating effects the increase would have, particularly in the food services sector: However, there’s little doubt that t

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Zeta Labs Raises $2.9M Pre-Seed Funding

FinSMEs

Zeta Labs, a San Francisco, Ca-based AI research and product company, raised $2.9M in Pre-Seed funding. The round was led by Daniel Gross, former head of AI at Y Combinator, and Nat Friedman, former Github CEO, with participation from Earlybird VC and Kaya VC as well as AI Grant, Shawn (swyx) Wang, Bartek Pucek and Mati Staniszewski, founder of […] The post Zeta Labs Raises $2.9M Pre-Seed Funding appeared first on FinSMEs.

Funds 130
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Next Edge to wind down flagship credit fund after halting redemptions

Private Equity Wire

A surge in redemption requests has prompted private debt manager Next Edge Capital to gate its flagship credit fund, leaving clients unable to access their money and the firm now planning to wind down the portfolio over the next two years, according to a report by the Globe and Mail. The move is the Toronto-based asset manager’s second wind-down of a private debt fund, with the firm having been in the process of closing the Next Edge RCM Private Yield Fund, whose credit adviser is RC Morri

Funds 111
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Why simplicity matters in total portfolio approach

Top 1000 Funds

The key to implementing a successful total portfolio approach is not about creating complexities, but rather maintaining simplicity within the shared lexicon of an investment team, said two of the approach's most well-known adopters.

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Earn Up to $60/hour: 10 Top-Paying Side Hustles That Let You Work From Home

The Motley Fool

Image source: Getty Images Even though some companies are requiring employees to go back to the office, many Americans still want to work from home. If you have the right in-demand professional skills and can make good use of a flexible schedule, finding a work-from-home side hustle is a great way to boost your income. According to recent survey data from FlexJobs , some of the best side hustles let you work from home -- and pay $30 to $60 per hour on average.

Legal 264
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Inflation is Obvious But Wage Gains Seem Invisible

The Big Picture

I’ve been observing how radically unusual various sentiment readings have been for a few years now. It made little sense to me that the post-pandemic era saw sentiment levels far below major dislocations such as the ‘87 crash, the 9/11 terrorist attacks, the Dotcom implosion, or the 08-09 great financial crisis. We have tried to identify the causal factors by considering social media , increases in partisanship , ignorance, even trolling of pollsters.

Taxes 128
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iExec Launches Enhanced DataProtector: Revolutionizing Web3 Monetization & Ownership

FinSMEs

Lyon, France, 4th June 2024, Chainwire The post iExec Launches Enhanced DataProtector: Revolutionizing Web3 Monetization & Ownership appeared first on FinSMEs.

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LP sentiment to private markets remains strong, says Coller

Private Equity Wire

The vast majority of limited partners are expecting to either increase or maintain their allocations to private markets investments over the next year, according to Coller Capital’s semi-annual Global Private Capital Barometer. The 40th edition of the barometer, which captured the views of 110 private capital investors from around the world who oversee a combined $2.1tn in assets, revealed that around one in three (31%) expect to increase their target allocation to alternative assets in th

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Investment staff at Ohio STRS lose bonuses to board infighting

Top 1000 Funds

The investment committee at the $94 billion State Teachers Retirement System of Ohio (STRS Ohio) has narrowly voted to block bonuses to investment staff.

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America’s Piggie Banks Are Full

A Wealth of Common Sense

The pandemic housing boom means Americans have more home equity than ever. Households have added roughly $12 trillion in home equity since the end of 2019: To put this number in context, there was only ~$6 trillion in home equity following the bursting of the housing bubble following the Great Financial Crisis. Out of the $32 trillion in total equity, let’s say half of it is tappable (meaning homeowners can cash it.

Banks 114
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The 2025 Social Security Cost-of-Living Adjustment (COLA) Forecast Just Changed, and It Could Pleasantly Surprise Many Retirees

The Motley Fool

Social Security is an essential lifeline for many retirees. About half of households with someone age 65 or older receive at least 50% of their income from the program, according to data collected by the Social Security Administration. Without Social Security, millions of seniors would be living in poverty. Since many seniors are reliant on Social Security for their living expenses, the annual cost-of-living adjustment (COLA) is an important part of their benefits.

Taxes 246
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Market Concentration

The Big Picture

A quick break from book authorship to share a fascinating set of data and charts, via Sam Ro. In his weekly missive, Sam points to some amazing charts from Global Financial Data. They are based on historical data that looks at 200 Years of Market Concentration. You might be surprised at the findings. As the chart above shows, there are long periods of market concentration.

Banks 125
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Ship Angel Raises $5M in Funding

FinSMEs

Ship Angel, a NYC-based provider of an AI-native platform for international shippers, raised $5M in funding. The round was led by Glasswing Ventures and newark venture partners (nvp), with participation from Bienville Capital, Socii Capital, and Plug and Play. The company intends to use the funds to support the expansion of its ocean and air […] The post Ship Angel Raises $5M in Funding appeared first on FinSMEs.

Funds 120
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Distressed debt soars at PE portfolio companies

Private Equity Wire

Distressed debt levels at private equity-owned companies have surged amid persistent high interest rates, with the amount owed by portfolio companies of the world’s 50 largest PE firms up 18% since mid-March to $42.7bn, according to a report by Bloomberg citing rankings from Private Equity International. With the PE industry loaded up with companies acquired during a period of low interest rates, industry leaders including Apollo Global’s Scott Kleinman and Steve Wilkinson, a managin

Debt 104
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Private equity gets carried away in the UK

Financial Times M&A

Plus, how David Ellison’s bid for Paramount collapsed and the steep geopolitical battle to buy a US ammunitions maker

Bidding 118
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My All-Time High in Savings

A Wealth of Common Sense

I track all of my savings and investments on Excel. Guess I’m old school and, yes, kind of a personal finance dork. I can’t help it. It’s nothing fancy. Just a collection of the holdings in our various accounts along with some simple calculations — net worth, annual retirement contributions, asset allocation, how much we’re saving each year, etc.

Financing 110
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Forget Nvidia: Here's Another Spectacular Semiconductor Stock to Buy Right Now, According to Wall Street

The Motley Fool

I'm being facetious when I tell you to forget Nvidia (NASDAQ: NVDA). After all, how can you ignore a stock that soared nearly tenfold in just 18 months and now has a $3.1 trillion market cap, which accounts for 6.7% of the entire S&P 500 index? Not to mention, the company's chips are the driving force behind artificial intelligence (AI). However, the incredible run in Nvidia stock made it quite expensive , even relative to its expected earnings a couple of years from now.

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Debunking QSR Minimum Wage BS: A Follow Up

The Big Picture

@TBPInvictus here A few days ago, Barry and I detailed how unscrupulous bad actors had taken Not Seasonally Adjusted data to falsely claim that California’s new $20/hour minimum wage had cost the state almost 10,000 quick-serve restaurant (QSR) jobs. I wrote: It appears to me that the Journal got that number from BLS. However, BLS only offers the series without seasonal adjustment; this makes a very meaningful difference.

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CampusAI Raises $10M in Pre-Seed Funding

FinSMEs

CampusAI, a Warsaw, Poland-based AI learning skills startup, raised $10M in pre-seed funding. Backers included angel investor Maciej Zientara. The company will use the funds to develop its platform and to enter 10 new markets with plans to acquire 200,000 customers. Founded in 2023 by Aureliusz Górski, CampusAI is an AI learning and collaboration platform that […] The post CampusAI Raises $10M in Pre-Seed Funding appeared first on FinSMEs.

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Bain to acquire edtech PowerSchool in $5.6bn deal

Private Equity Wire

Private multi-asset alternative investment firm Bain Capital is to acquire PowerSchool Holdings, a provider of cloud-based software for K-12 education, in a transaction valuing the business at $5.6bn. Under the terms of the agreement, PowerSchool stockholders will receive $22.80 per share in cash upon completion of the proposed deal. The per share purchase price represents a premium of 37% over PowerSchool’s unaffected share price of $16.64 as of 7 May 2024, the last trading day prior to media r

Education 105
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Is Lazard’s new boss lonely at the top?

Financial Times M&A

Plus, EQT’s Jean Salata on China’s investment risks and why the UAE wants to team up with the US on artificial intelligence

Investing 111
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The U.S. Real Estate Market in Charts

A Wealth of Common Sense

Back in 2020 I wrote a quick rundown of the U.S. real estate market in charts to show how the pandemic was impacting the housing market. It’s been a few years so it’s time to update those charts. The existing home months’ supply measures the number of months it would take to sell all of the houses on the market at the current pace of sales: It’s well off the lows of late-2021/early-2022 and trendi.

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Surprise! Novo Nordisk's Wegovy Just Achieved Another Milestone. Here's What You Need to Know.

The Motley Fool

Novo Nordisk (NYSE: NVO) has emerged as one of the biggest names in the pharmaceutical world thanks to its robust line of glucagon-like peptide-1 (GLP-1) medicines. The Danish drugmaker develops Ozempic, Rybelsus, Saxenda, and Wegovy. While Ozempic is approved by the Food and Drug Administration (FDA) to treat diabetes patients, its sibling medicine Wegovy is prescribed for obesity care.

Returns 246
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The growing case to embed climate risk in finance teaching

Financial Times: Moral Money

Four leading finance professors discuss best practice, successful innovations, and important concepts and themes

Financing 106
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EvolutionaryScale Raises $142M in Seed Funding

FinSMEs

EvolutionaryScale, a NYC-based artificial intelligence powered biology startup, raised $142m in seed funding. The round was led by Nat Friedman, Daniel Gross and Lux Capital, with participation from Amazon Web Services (AWS) and NVentures, the venture capital arm of NVIDIA, as well as angel investors. The company intends to use the funds to expand operations and […] The post EvolutionaryScale Raises $142M in Seed Funding appeared first on FinSMEs.

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Warwick Capital Partners acquires majority stake in UK care home company Danforth

Private Equity Wire

Global private equity and credit firm Warwick Capital Partners has acquired a majority stake in Danforth Care Homes from UK care home developer LNT Care Developments. The deal marks Warwick’s second investment in the UK care sector, the first being Ideal Carehomes in 2019. Danforth operates 18 care homes across the UK and expects to open seven further homes in the coming months.

Stakes 98
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A buyout gone wrong creates fireworks in the private credit market

Financial Times M&A

Lenders are considering their options at Pluralsight, a distressed company owned by private equity firm Vista Equity Partners

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Fixed Income Has Income Again

A Wealth of Common Sense

The bad news about the historic bond bear market is that fixed income investors were forced to deal with large losses in certain areas of the bond market. The good news is the rising rates that caused the bear market in bonds mean yields are in a much better place than they’ve been for the past 10-15 years. Fixed income has income again. In fact, investors in search of yield have all sorts of options — T-bill.

Investors 109
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Another Artificial Intelligence (AI) Stock Split Is Coming. Could Broadcom Be the Next Nvidia?

The Motley Fool

If you believe its hype, artificial intelligence (AI) is one of the most profound advances in technology ever. This may be hyperbole -- time will tell -- but it's clear already that the technology has commercial power. Its impact in the market has been enormous, with its champion, Nvidia (NASDAQ: NVDA) , joining Apple and Microsoft as among the biggest companies in the world.

Prospects 246
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Investors pull cash from ESG funds as performance lags

Financial Times: Moral Money

Sustainably focused equity funds suffer net $40bn of outflows in 2024, the first sustained exodus

Funds 111
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Orby AI Raises $30M in Funding

FinSMEs

Orby AI, a Mountain View, CA-based technology company which specialises in generative AI solutions for the enterprise, raised $30M in funding. The round was led by New Enterprise Associates (NEA), Wing VC and WndrCo with additional participation from Pear VC. The Series A financing followed a seed funding round co-led by NEA and Pear VC. […] The post Orby AI Raises $30M in Funding appeared first on FinSMEs.

Funds 113
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Chicago public school teachers’ pension fund allocates $30m to PE funds

Private Equity Wire

Chicago Public School Teachers’ Pension & Retirement Fund has allocated $30m to private equity funds following its 20 June board meeting, according to a report by Pensions & Investments. The $12.5bn pension fund has allocated $20m to the Mesirow Private Equity Co-Investment Fund IX managed by Mesirow Financial, having previously committed $20m to Mesirow Private Equity Fund VIII-B in 2021.