Unprecedented Investment Surge: $1 Trillion Flows Into ETFs in 2023 [WSJ]
This year has witnessed an extraordinary influx of capital into ETFs, totaling an astonishing $1 trillion, which has significantly benefited major financial players like BlackRock. The firm has seen record management fees, which have propelled its stock to new heights. Additionally, smaller asset managers focusing on actively managed ETF strategies have also had a remarkable year. Notably, the gap in flows between U.S. stock funds and other ETF types reached an all-time high in November. Furthermore, following the approval of various asset managers in January 2024 to introduce the first U.S. funds capable of direct bitcoin exposure, the cryptocurrency market experienced a notable rally, as billions were invested in these funds, leading to some of the most successful ETF launches on record.
Trump’s Ambiguous Comments on Immigration Visas Spark Controversy [NYT]
In recent discussions, former President Trump has entered the fray regarding the contentious debate over immigrant visas, yet his remarks have provided little clarity. Meanwhile, Elon Musk made headlines with a provocative comment aimed at a visa critic, asserting that H-1B visas are pivotal to the success of companies like SpaceX and Tesla. This year alone, Tesla has secured an impressive 724 H-1B visas. Adding fuel to the fire, Stephen K. Bannon, a close advisor to Trump and a vocal opponent of immigration, echoed Musk’s sentiments online, derogatorily labeling him as a “toddler.” Bannon proclaimed, “This is war,” expressing his gratitude for the ongoing debate before Trump officially assumes office.
Significant Closure of US Stock Market on January 9 to Honor Carter [Bloomberg via Yahoo!]
In a tribute to the late President Jimmy Carter, who passed away on December 29 at the remarkable age of 100, the US stock market will observe a closure on January 9 as part of a longstanding American tradition. This tradition dictates that financial institutions cease operations following the death of a sitting or former U.S. president. Carter, recognized as the longest-living president in U.S. history, will be honored similarly to how the nation mourned President George H.W. Bush on December 5, 2018, during his funeral. Such closures serve as a poignant reminder of the impact these leaders have had on the nation.
IBM Faces UK Antitrust Review Over Proposed $6.4 Billion Acquisition of HashiCorp [WSJ]
IBM’s ambitious plan to acquire San Francisco-based HashiCorp for $6.4 billion is now under scrutiny by UK antitrust regulators. HashiCorp is renowned for its innovative tools and products that aid clients in establishing robust cloud infrastructure. This proposed acquisition is also attracting the attention of the U.S. Federal Trade Commission, which has requested additional information from both companies regarding the deal. The scrutiny highlights the growing concern over market competition and the implications of such significant mergers in the tech industry.
Investor Reflects on Major Losses and Lessons Learned from Ignoring Key Trades [WSJ]
In a candid admission, Richard Toh from Kenrich Partners expressed his realization that he has strayed from effective investment strategies, stating, “I have come to the realization that I am not good at what I am doing, but I guess some of you may have sensed that already.” He extended his apologies to his followers, admitting to significant losses, including a 35% decline, stemming from missed opportunities in investments like Nvidia and bitcoin. Toh reflected on how the best investments are often the most unexpected ones, acknowledging a sense of aging that affects decision-making in a rapidly changing market landscape.
Hedge Fund Manager Crispin Odey Files £79m Libel Lawsuit Against Financial Times [Guardian]
Crispin Odey, a prominent hedge fund manager, is seeking £79 million in damages from the Financial Times in response to a series of allegations published in June. The FT reported that it had interviewed 13 women who accused Odey of abuse, and subsequently uncovered additional claims of sexual assault and harassment. Odey’s lawyer, Adam Speker, contended in court that since the publication of the initial article on June 8, Odey has struggled to secure alternative employment, resulting in projected future earnings losses estimated at £144 million. This case highlights the serious implications of reputational damage in the finance industry.
