🍋 Bridgewater's Pivot

Bridgewater is struggling to chart a post-Dalio path, plus $TSLA struggling to grow.

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"Do not save what is left after spending, but spend what is left after saving." — Warren Buffett

Good Morning! Tesla’s rough 2024 took another turn for the worse with deliveries plummeting 8.5% year-over-year. General Electric completed its three-way split yesterday, with its aviation and energy businesses trading on the NYSE. McKinsey is paying some consultants up to 9-months pay to find new jobs. UBS announced a $2 billion share buyback program, and Amazon wants to finally get rid of those signature brown boxes. 

High returns, recurring monthly income, diversification–private credit is a $1.9 trillion asset class, and everyday investors can invest today with Percent. 

SQUEEZ OF THE DAY

Bridgewater’s Pivot

Bridgewater Associates, the world’s largest hedge fund, is struggling in the post-Dalio era.

Bridgewater used to be the crown jewel of hedge funds. But since Dalio stepped down, the fund has been struggling with lagging returns and investor skepticism. 

The company’s new CEO, Nir Bar Dea, has been busy giving the fund a makeover over the past 18 months - downsizing and reshaping its culture and investment strategies.

Some of his initiatives include retracting some of Dalio's famed "radical transparency" policies, such as discontinuing the use of employee performance "baseball cards".

Despite facing criticism and legal challenges related to these changes, Bridgewater's flagship Pure Alpha fund has shown signs of recovery, posting a 16% rebound this year after a period of volatility. However, the firm's future success hinges on its ability to sustain this performance and adapt Dalio's investment principles to a changing market landscape.

Bridgewater is down to around $60 billion in AUM, from a peak of $100 billion. Last year, Bridgewater’s flagship fund lost 7.6%.

Takeaway: Reimagining Bridgewater without Dalio is a challenge. His doctrine of "radical transparency" and his larger-than-life persona have left a mark on the hedge fund's fabric. As Bridgewater's assets dwindle from its peak, reducing its scale to focus on performance, Bar Dea's leadership is facing a strong test, and only time will if Bridgewater can thrive beyond the shadow of its charismatic founder.

PRESENTED BY PERCENT

Don’t Miss the “Golden Era” for Private Credit

Private credit is now a $1.9 trillion asset class and still growing

AllianceBernstein and Goldman Sachs are calling it a “key component of a diversified investment portfolio” and “the biggest opportunity set across the alternative space”. 

That’s because private credit can offer higher yields, less correlated returns, and liquidity compared to public markets–while also hedging against inflation and rising interest rates.

You can take advantage with Percent. They’ve already funded over $1 billion in private credit deals, giving investors access to: 

  • Attractive yields: Percent’s weighted average APY was 18.83% in 2023

  • Recurring interest income: Investors earned $17M in interest in 2023 

HEADLINES

Top Reads

  • Tesla shares fall after deliveries drop 8.5% from a year ago (CNBC)

  • General Electric completes split into 3 public companies (Axios)

  • UBS announces $2 billion share buyback program (YF)

  • Amazon wants to get rid of its signature brown boxes (CNBC)

  • Microsoft to separate Teams and Office globally amid antitrust scrutiny (Reuters)

  • Venture firms are using AI to identify and close deals (WSJ)

  • OpenAI removes Sam Altman’s ownership from its startup fund (Reuters)

  • Citi cuts US tech banker jobs during broad reorganization (YF)

  • Senate investigating whether ER care has been harmed by private-equity firms (NBC)

  • Reddit and Trump Media both went public, how much they left on the table (Axios)

CAPITAL PULSE

Markets Rundown

Stocks continued their weak start to the quarter.

Movers & Shakers

  • (+) ChampionX ($CHX) +10% after the oilfield equipment maker agreed to be sold to SLB.

  • (–) Tesla ($TSLA) -5% because of the first year-over-year decline in deliveries in four years.

  • (–) Petco ($WOOF) -7% after a downgrade by Bank of America.

Private Dealmaking

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BOOK OF THE DAY

Look Again

Have you ever noticed that what is thrilling on Monday tends to become boring on Friday? Even exciting relationships, stimulating jobs, and breathtaking works of art lose their sparkle after a while. People stop noticing what is most wonderful in their own lives.

They also stop noticing what is terrible. They get used to dirty air. They stay in abusive relationships. People grow to accept authoritarianism and take foolish risks. They become unconcerned by their own misconduct, blind to inequality, and are more liable to believe misinformation than ever before.

But what if we could find a way to see everything anew? What if you could regain sensitivity, not only to the great things in your life, but also to the terrible things you stopped noticing and so don’t try to change?

Now, neuroscience professor Tali Sharot and Harvard law professor (and presidential advisor) Cass R. Sunstein investigate why we stop noticing both the great and not-so-great things around us and how to “dishabituate” at the office, in the bedroom, at the store, on social media, and in the voting booth.

This groundbreaking work, based on decades of research in the psychological and biological sciences, illuminates how we can reignite the sparks of joy, innovate, and recognize where improvements urgently need to be made. The key to this disruption—to seeing, feeling, and noticing again—is change.

By temporarily changing your environment, changing the rules, changing the people you interact with—or even just stepping back and imagining change—you regain sensitivity, allowing you to more clearly identify the bad and more deeply appreciate the good.

"A sensational guide to a more psychologically rich life."

DAILY VISUAL

Strong Labor Market Continues

The labor market has rebounded since the Fed turned dovish

Source: Apollo

DAILY ACUMEN

Public Speaking

Public speaking can often evoke a sense of dread, but with thoughtful preparation and a positive mindset, it can become an empowering experience. To navigate the challenge, start by getting to know your audience well before the event. Understanding their demographics, interests, and expectations will not only make you more comfortable but also enable you to connect more deeply and meaningfully with them.

Instead of fixating on how you're perceived, concentrate on the impact of your message. Whether your goal is to entertain, inspire, or educate, keeping the focus on your audience's takeaways can help diminish self-doubt. Crafting a speech isn't just about what you say but how you say it. Creating an outline that encapsulates your main points can guide you smoothly through your presentation without the temptation to read verbatim from your notes.

Engagement with the event's organizer can provide insights into the event's purpose and how your speech fits into the bigger picture. This understanding ensures that your message resonates and contributes to the event's success. Moreover, the art of delivering a compelling speech lies in practice. Rehearsing your speech, ideally in front of a supportive audience, allows you to refine your delivery and receive feedback.

ENLIGHTENMENT

Short Squeez Picks

MEME-A-PALOOZA

Memes of the Day

 

 

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