Kalshi and Polymarkets are among the pre-IPOs superstars right now...
Source: Bloomberg, Bay Area times, RBC
Morgan Stanley analysts project that global AI-related capex will approach $3 trillion
~$1.5 trillion needing to be financed across public and private credit markets.
More "crockroaches" in private credit land.
Last week, lending giant BlackRock wrote down a private loan made to home improvement company Renovo Home Partners to zero. As recently as last month, BlackRock valued the loan at 100 cents on the dollar. The drastic revision comes as Dallas-based Renovo — a roll-up of regional kitchen and bathroom remodeling businesses created by private equity firm Audax Group in 2022 — abruptly filed for bankruptcy last week, indicating it plans to shut down. BlackRock held the majority of Renovo’s roughly $150 million of private debt, while Apollo Global Management Inc.’s MidCap Financial and Oaktree Capital Management held smaller chunks, according to people with knowledge of the matter, who asked not to be identified discussing a private transaction…” When one of America’s largest, most sophisticated lenders takes a 100% loss on a loan over the course of one month, it begs the question: what other "cockroaches" are hiding in the shadows? Source: Ross Hendricks @Ross__Hendricks
Michael Burry's hedge fund has 80% of it's $1.38B portfolio on Nvidia & Palantir puts
Can't wait for The Big Short 2 Source: Wall Street Memes on X
Hedge funds are SELLING massive amount of US equities:
Hedge funds sold $1.7 BILLION last week and $2.1 billion in the prior week, marking their 5th STRAIGHT week of selling. Retail and institutional investors turned to buyers. Nevertheless, the total 4-week selling was $1.9 billion. Source: BofA, Global Markets Investor
A correlation breakdown:
Private equity stocks (Blackstone, KKR, Apollo, Carlyle) dropped 14.5% in just 3 weeks, while at the same time the S&P 500 just hit another high. What does it mean? Source: Jeff Weniger, Refinitiv
OpenAI valuation soars to $500bn, topping Musk’s SpaceX
Current and former OpenAI employees sold ~$6.6bn of stock to investors at a $500bn valuation, boosting the US company’s price tag well past its previous $300bn level. Source: HolgerZ, Bloomberg
While everyone is moving away from humans towards ai, hedge fund giant de shaw is doing the opposite and launching its first ever fund run by humans, not ai.
DE Shaw is raising as much as $5 Billion in its first Hedge Fund run by humans. The D.E. Shaw Cogence Fund will trade stocks and credit. Source: Bloomberg, Nishant Kumar @nishantkumar07, Gurgavin
