Finance Knuggets

Jun 21, 2024

I learned about a comparison between SEP IRA and Solo 401(k), two popular retirement savings plans for self-employed individuals. The article also covered 11 great ways to grow wealth, including the importance of starting small and being methodical about increasing wealth, as well as the need to have a basic knowledge of cryptocurrency before investing in it. There was also a discussion about the potential downsides of owning an RV in retirement and the importance of choosing the right financial advisor to work with. Additionally, I read about how AI mania is creating opportunities elsewhere, with a money manager suggesting three stocks to consider. There was also news about an investigation into Affinity Partners, a private equity firm led by Jared Kushner, and updates on various venture capital deals and fundraising activities in the financial industry.

I also learned that the total SPAC IPO pipeline has increased to 44 issuers, with another three SPACs pricing IPOs and raising $410 million in aggregate. However, the highly anticipated SPAC deal for Trump Media & Technology Group is not faring well, with shares opening 41% lower than they did on June 1 and trading at less than half of where they were on merger day. In other news, the Securities and Exchange Commission has filed a lawsuit against a self-proclaimed venture capitalist for making a fake $200 million offer to acquire Virgin Orbit Holdings Inc., alleging that the individual made false and misleading statements and omissions about his investment experience and available funds.

I also came across an article discussing how big hedge fund firms like Point72 Asset Management, Citadel, and Balyasny Asset Management have implemented “hedge fund boot camps” to train promising analysts into successful portfolio managers. This approach has become necessary as the talent pool for proprietary traders at big investment banks has dried up, and the hedge fund industry has shifted towards managing multiple portfolio managers to extract alpha. Additionally, the trend in modern finance where banks are doing less of their traditional risky activities, like trading and lending, and nonbanks are stepping in to take on those activities was highlighted, raising concerns about systemic risk.

Furthermore, there is growing demand for Generative AI and significant investments being made into the crypto industry. The beverage industry is also being shaped by startups offering drinks that promote functions, experiences, and eco-driven benefits to consumers. Private equity firms are showing strong interest in the bottled water industry, with One Rock Partners and Metropoulos & Co. acquiring Poland Springs and other brands from Nestlé for $4.3 billion. In other news, TravelPerk, a European corporate travel booking platform, acquired Chicago-based startup AmTrav and also raised $135 million in debt financing. These developments indicate the continued momentum in the business and financial landscape.

Stay Well!