Your long = their short

Short sellers had their most profitable week ever, NYSE is testing appetite for 24/7 trading, rates traders are flocking from banks to hedge funds, Tesla shareholders are bracing for disappointing earnings, and a premier tail risk fund thinks rate cuts will signal a market crash.

Author

Litquidity Capital
April 23, 2024

Sponsored by

Good Morning,

Short sellers had their most profitable week ever, NYSE is testing appetite for 24/7 trading, rates traders are flocking from banks to hedge funds, Tesla shareholders are bracing for disappointing earnings, and a premier tail risk fund thinks rate cuts will signal a market crash.

Let’s dive in.

Before The Bell

As of 04/22/2024 market close.

Markets

  • US stocks rebounded from last week's selloff as Middle East tensions dimmed and investors turned focus to upcoming earnings

    • The S&P and Nasdaq snapped six-day losing streaks

  • UK's FTSE soared to a new ATH

  • Gold suffered its biggest daily loss since June 2022

  • Money markets are now pricing in only 41 bps of rate cuts this year

Earnings

  • Verizon shares fell ~5% after missing Q1 revenue estimates, although it reported fewer-than-expected quarterly subscriber losses (WSJ) 

  • What we're watching this week:  

    • Today: Tesla, Visa, GM, GE

    • Wednesday: Meta, Boeing, IBM, Ford, Chipotle, AT&T

    • Thursday: Microsoft, Alphabet, Intel, Snap Inc., American Airlines

    • Friday: ExxonMobil, Chevron, Abbvie

  • Full calendar here

Headline Roundup

  • Black swan fund says Fed rate cuts will signal market crash (RT)

  • Short sellers pocket biggest-ever weekly profit from Big Tech selloff (RT)

  • 'Overdue' pullback in US stocks to test dip-buyers' resolve (RT)

  • NYSE is considering 24/7 trading (FT)

  • Rates traders flock from banks to hedge funds as BOJ ends YCC (BBG)

  • Companies flock to cash at fastest rate since Covid (WSJ)

  • Consulting firms step up efforts to push out low performers (FT)

  • Australian hedge fund First Sentier Investors will close four funds totaling $9B (BBG)

  • US credit investors see geopolitical tensions as top concern (RT)

  • Fed says 1.8k banks, and others tapped emergency lending facility (RT)

  • Low income consumers are getting increasingly crunched on loans (RT)

  • Hedge fund industry AUM hit $4.3T in Q1 (RT)

  • Tesla shareholders brace for worst results in seven years (FT)

  • Goldman moved head of Europe FIG to Paris in post-Brexit revamp (FT)

  • Grain trader ADM's CFO will resign amid accounting investigation (RT)

  • Venezuela to accelerate crypto shift as oil sanctions return (RT)

  • Meta to 'open up' quest headset OS to rivals (BBG)

  • Injury rates at SpaceX exceed industry average for second year (RT)

  • Columbia cancels in-person classes amid protests (WSJ)

A Message From The Rundown AI

How do you stay up-to-date with the insane pace of AI? Join The Rundown – the world’s fastest-growing AI newsletter with over 500,000+ readers learning how to become more productive using AI every morning.

1. Our team spends all day researching and talking with industry experts.

2. We send you updates on the latest AI news and how to apply it in 5 minutes a day.

3. You learn how to become 2x more productive by leveraging AI.

Deal Flow

M&A / Investments

  • C&S Wholesale Grocers will acquire an additional 166 stores from Kroger and Albertsons for a total of 579 stores for ~$2.9B cash (RT) 

  • UK PE firm Bridgepoint is exploring options including a sale for Vitamin Well, a Swedish drinks business that could be valued at over $2.1B (FT)  

  • Real estate information provider CoStar Group will acquire Matterport, a provider of 3D virtual tours of properties, in a $1.6B cash-and-stock deal (RT) 

  • Saudi Aramco began talks to buy a 10% stake in China’s $15B Hengli Petrochemical (BBG) 

  • Carlyle-backed oil pipeline company Crescent Midstream is exploring a potential sale after receiving takeover interest and could be valued at $1.3B (BBG) 

  • Quanex Building Products agreed to acquire UK-based construction solutions provider Tyman in a $976M cash-and-stock deal (RT) 

  • PE firm Permira began the sale process of its 50% stake in Asian aquatic food provider Grobest, targeting a $1B valuation (RT) 

  • French energy group TotalEnergies will acquire Malaysian oil company Sapura Energy’s 50% stake in oil and gas upstream company SapuraOMV for $705M (RT) 

VC

  • Workforce management software startup Rippling raised a $200M Series F at a $13.4B valuation led by Coatue (TC)

  • Skyports, a startup building takeoff and landing infrastructure for eVTOLs, raised a $109.5M Series C from ACS and Groupe ADP (FN)

  • Nonprofit fundraising and CRM platform Givebutter raised $50M led by Bessemer Venture Partners (PRN)

  • ‘Send now, pay later’ startup Pomelo raised a $35M Series A led by Vy Capital (TC)

  • Smart Reporting, a Munich-based medical reporting startup, raised a $25.4M Series C led by TVM Capital Life Science (FN)

  • Nominal, an end-to-end data analysis solutions for industrial engineering teams, raised $27.5M: a $7.5M seed round led by Lux Capital and a $20M Series A led by General Catalyst (BW)

  • Exowatt, a modular energy platform designed to power energy-intensive data centers, raised a $20M seed round from a16z, Atomic, and Sam Altman (BW)

  • HappySignals, a Finnish IT experience management company, raised $12M in funding led by Mandatum Asset Management (FN)

  • Accacia, a decarbonization platform for real estate and infrastructure sectors, raised a $6.5M pre-Series A round led by Illuminate Financial (BW)

  • Auxa Health, a provider of an AI-powered benefit navigation technology solution, raised a $5.2M seed round led by Zeal Capital Partners (FN)

  • Pelvital, a women’s health startup, raised a $2.4M seed plus round led by Boomerang Ventures (FN)

  • BettrData, a platform for data operators and developers, raised a $2.2M seed round led by Range Ventures (VC)

IPO / Direct Listings / Issuances / Block Trades

  • Indian telecom Vodafone Idea's $2.2B FPO garnered $10.6B worth of bids (RT)

  • CVC Capital Partners is seeking to raise up to $1.7B at an up to $16B valuation in an Amsterdam IPO (BBG) 

  • Cruise operator Viking Holdings is seeking to raise up to $1.1B at a $10.8B valuation in a US IPO (RT)

Debt

  • UK supermarket giant Asda Group is seeking to raise up to $2.2B through a bond issuance to refinance debt (BBG) 

  • Citigroup raised $730M through a Canadian-dollar bond offering, the first time since 2015 (BBG) 

Bankruptcy / Restructuring

  • Clothing retailer Express filed for bankruptcy with plans to sell itself and has offers from brand manager WHP Global and mall landlords Simon Property Group and Brookfield Properties (BBG)  

  • Elliott Management is buying bonds of troubled UK utility company Thames Water (FT)

Fundraising

  • Malaysia’s SWF Khazanah Nasional will set up a $627M VC fund to invest in Southeast Asian startups (BBG) 

  • TLcom Capital, Africa’s largest early-stage VC fund, raised $154M for its TIDE Africa Fund II (BBG) 

Crypto Corner

  • Memecoin mania sent Bitcoin fees soaring during ‘halving’ (BBG)

  • Two SEC lawyers resigned after judge blasted agency for 'abuse' of power in crypto fraud trial (TB)

Exec’s Picks

Litney Partners - Financial Recruiting 💼💼

If you're currently a junior investment banker looking to break into the buy side, considering lateraling to another investment bank, or have recently been impacted by widespread layoffs, it's time you check out Litney Partners, a partnership between Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates at leading private equity, hedge fund, venture capital, growth equity, and credit funds, as well as investment banks.

To get started, simply head over to the Litney website and create your profile by dropping your resume / filling out the form:

Meme Cleanser

Reply

or to participate.