“I'm not in the hedge fund business. I'm in the business of keeping my job.” — Lloyd Blankfein
Good Morning! The IRS wants to use ChatGPT to catch you - they say they’re using AI and focusing on tax evasion at hedge funds, private equity firms, real estate investors, and law firms. Goldman's planning a fresh round of job cuts as early as October. But on Wall Street, some investors are optimistic about a sudden bond binge - they think recession fears are misplaced, and interest rates will remain high.
A new study found that the majority of workers are wearing business casual - and that just 3% of men are wearing suits and ties to work in 2023. The fall in home prices might already be a thing of the past. And tough news for crypto mogul Faruk Fatih Ozer who was sentenced by a Turkish court to 11,196 years in prison (yes, you read that right).
SQUEEZ OF THE DAY
Next Great Wall Street Movie
Looking for a new flick after the Barbenheimer craze? Brace yourself for Dumb Money, retelling the GameStop saga, and hitting theaters next week.
The movie's poster features cash stacks shaped like a middle finger, accompanied by the proclamation, "Dear Wall Street.” It puts Wall Street titans like Ken Griffin, Steven Cohen, and Gabe Plotkin on blast.
But there’s one twist. Who produced and financed the movie? None other than Teddy Schwarzman, son of Blackstone’s CEO.
The R-rated retelling of Roaring Kitty and the legendary short squeeze was produced on a relatively shoestring budget, rare for films in this streaming age.
The first impressions of Dumb Money are mostly positive, with Rotten Tomatoes giving it a 91% score.
Takeaway: It seems a little ironic that Blackstone CEO’s son would produce a movie ripping professional Wall Street investors. And they’re hoping Dumb Money becomes the greatest Wall Street movie since The Big Short, which won five Oscar nominations and raked in $133 million in sales.
Stocks snapped a 3-day losing streak on Friday.
(+) Snowflake ($SNOW) +4% after D.A. Davidson initiated a buy rating on the cloud data provider.
(–) Planet Labs ($PH) -6% after the satellite imagery company missed on earnings.
(–) RH ($RH) -6% because the furniture retailer's CEO warned of challenging luxury housing market.
Respol bought ConnectGen, a renewable energy developer, for $768 million
Biobest Group bought Biotrop, a biological farming solutions provider, for $570 million
Alchemy Copyrights bought Round Hill Music Royalty Fund, whose portfolio includes Beatles songs, for $496 million
Mariana Oncology, a developer of radiopharmaceuticals for treating cancer, raised $175 million
Mill Industries, a food and recycling startup, raised $100 million
Meati, a maker of plant-based meats, raised $50 million
Get access to private deal flow here.
SPONSORED BY RYSE
A.I. and Smart Homes - A Match Made in Technological (and Investor) Heaven
The integration of Artificial Intelligence with Smart Home devices opens up a world of possibilities.
We’ve recently seen Roomba - the robot vacuum cleaner that uses AI image analysis - get acquired by Amazon for $1.7 Billion!
Powered by advanced sensors and AI, RYSE SmartShades allow users to optimize their settings for maximum energy savings. So much so that they received a CDN $4M grant from the government to develop clean-tech products!
The brash strategy that made Vivek Ramaswamy a fortune (WSJ)
Goldman Sachs’ IPO chief talks about what’s next for listings (BB)
Mattel’s windfall from Barbie (NYT)
Apartment rents on verge of declining due to massive supply (CNBC)
Blue Owl says a $10B private credit loan is within reach (BB)
SoftBank’s Arm IPO currently six times oversubscribed (Reuters)
Ripple buys crypto infrastructure startup in second acquisition of 2023 (CNBC)
The great resignation turns into the great stagnation for the Big Four (BB)
Coinbase CEO says it would help if Gensler were no longer SEC chair (YF)
Inside Hollywood’s SBF mad scramble (Ankler)
BOOK OF THE DAY
The Battle For Your Brain
Imagine a world where your brain can be interrogated to learn your political beliefs, your thoughts can be used as evidence of a crime, and your own feelings can be held against you.
A world where people who suffer from epilepsy receive alerts moments before a seizure, and the average person can peer into their own mind to eliminate painful memories or cure addictions.
Neuroscience has already made all of this possible today, and neurotechnology will soon become the “universal controller” for all of our interactions with technology.
This can benefit humanity immensely, but without safeguards, it can seriously threaten our fundamental human rights to privacy, freedom of thought, and self-determination.
From one of the world’s foremost experts on the ethics of neuroscience, The Battle for Your Brain offers a path forward to navigate the complex legal and ethical dilemmas that will fundamentally impact our freedom to understand, shape, and define ourselves.
“A new dawn of brain tracking and hacking is coming. Will you be prepared for what comes next?”
Short Squeez Picks
Yuan Hits Nearly 16-Year Lows
OneFund is Increasing Access to PE and VC Investing
OneFund is revolutionizing the buyside space, helping more individuals access and learn about top-tier private equity and venture capital funds.
Despite outperforming public markets over the last 25 years, access to top-tier PE and VC funds remains locked behind high investment minimums and complexity. OneFund is changing this.
Rule 1: Know what you own
You have to know what you own, and why you own it.
When you know what you own, you’ll be able to take better investment decisions.
Rule 2: Never invest in companies without understanding their finances
The biggest losses in stocks come from companies with poor balance sheets.
Only invest in good companies and your return will increase dramatically.
Rule 3: Focus on the long term
There is no correlation between the success of a company’s operations and the success of a stock over a few years.
However, in the long-term stock prices will ALWAYS follow the underlying fundamentals of the company. If the company does well, you will also do well as an investor.
Rule 4: Long shots always miss the mark
Don’t invest in hypes or the next big thing.
Instead, invest in quality companies with a healthy balance sheet, high profitability, and good capital allocation.
Rule 5: Have some cash on the sideline
If you can’t find attractive companies, put your money in the bank until you discover some.
It is always a good idea to have some cash on the sideline. This allows you to invest (heavily) when Mister Market has become (too) pessimistic.
You want to invest in companies with a good capital allocation.
The Return On Invested Capital (ROIC) is one of the most important metrics for quality investors. The higher, the better.
Memes of the Day
*This should not be construed as, nor is it intended to be, an offer to sell or solicitation of an offer to buy any securities, or participate in any investment, or as any form of advice. OneFund is not a registered investment adviser or registered broker-dealer and does not provide investment recommendations or advice of any kind.