According to a Feb. 17, 2026, SEC filing , RWC Asset Advisors exited its stake in Li Auto (NASDAQ:LI) , selling 1,638,544 shares during the fourth quarter. Based on the average share price for the quarter, the estimated transaction value was roughly $33 million. The quarter-end value of the position had been $41.5 million as of the prior 13F filing. RWC Asset Advisors didn't reduce its Li Auto pos...
According to a Feb. 17, 2026, SEC filing , RWC Asset Advisors exited its stake in Li Auto (NASDAQ:LI) , selling 1,638,544 shares during the fourth quarter. Based on the average share price for the quarter, the estimated transaction value was roughly $33 million. The quarter-end value of the position had been $41.5 million as of the prior 13F filing. RWC Asset Advisors didn't reduce its Li Auto position; it walked away entirely from a holding that represented roughly 6.8% of the fund's assets just one quarter earlier. That kind of decisive move will catch many investors’ attention, even if the reasons behind it aren't spelled out in the SEC filing. Here’s what we do know. Li Auto shares had already fallen fairly dramatically in the months leading into Q4 2025 -- and the stock has continued to lag the broader market since then. Its most recent earnings report wasn’t exactly inspiring either: The company missed estimates on the top and bottom lines, with revenue declining 35% year over year, and vehicle deliveries down 31%. Continue reading
Tesla Inc. and SpaceX CEO Elon Musk has shared that Alphabet Inc. will win the AI race in the West, while China stands to win AI on Earth, days after claiming that his enterprises will exceed rivals in the development of the technology. Google Will Win AI In The West On Thursday, Musk, in a response to user Bindu Reddy on X, who complained of issues with Google’s Gemini 3.0 model, made his predict...
Tesla Inc. and SpaceX CEO Elon Musk has shared that Alphabet Inc. will win the AI race in the West, while China stands to win AI on Earth, days after claiming that his enterprises will exceed rivals in the development of the technology. Google Will Win AI In The West On Thursday, Musk, in a response to user Bindu Reddy on X, who complained of issues with Google’s Gemini 3.0 model, made his predictions. “Google will win the AI race in the West, China on Earth and SpaceX in space,” he said in his response, positioning his company as the leader in the tech sector’s orbital data center push. Google’s AI arm, DeepMind, has accelerated its development efforts, bringing in Jasjeet Sekhon as chief strategy officer. Sekhon was previously the chief scientist and head of AI at Bridgewater Associates. Google will win the AI race in the West, China on Earth and SpaceX in space Don't Miss: Elon Musk On Chip Production The CEO also outlined the challenges that artificial intelligence currently faces when responding to a user, who predicted that the price of AI hardware and compute will rise due to linear supply and an increase in demand. “The limiting factor will shift from chips to energy on Earth,” he said, predicting that AI’s power demand would present challenges for the energy sector. However, Musk then shared that the limiting factor for the technology would revert “back to chips when space solar (star) power is unlocked.” The limiting factor will shift from chips to energy on Earth, then back to chips when space solar (star) power is unlocked Trending: This Startup Thinks It Can Reinvent the Wheel — Literally Nvidia’s Orbital Datacenter Goal, Tesla’s Terafab At the GTC 2026 event earlier this week, NVIDIA Corp CEO Jensen Huang shared that the company was developing the Space-1 Vera Rubin Module chip, which, the CEO shared, was designed to carry out space-based AI compute. Meanwhile, Musk reaffirmed Tesla’s chip production goals, sharing that the company’s Terafab project wo...
Jacob Wackerhausen The market sellers have finally showed up, said Ross Gerber, co-founder, president and CEO of Gerber Kawasaki Wealth and Investment Management. “Hard to be bullish at the moment,” he said. “Inflation is real and not going away soon. It is neither good for stocks nor bonds.” Guy LeBas, chief fixed income strategist at Janney, captured the mood more succinctly: “I dunno about you,...
Jacob Wackerhausen The market sellers have finally showed up, said Ross Gerber, co-founder, president and CEO of Gerber Kawasaki Wealth and Investment Management. “Hard to be bullish at the moment,” he said. “Inflation is real and not going away soon. It is neither good for stocks nor bonds.” Guy LeBas, chief fixed income strategist at Janney, captured the mood more succinctly: “I dunno about you, but I’m feeling '22.” The inflation picture continues to deteriorate as geopolitical tensions mount. Crude oil futures ( CL1:COM ) climbed to over $98 on Friday, while Brent futures ( CO1:COM ) surpassed $113 per barrel. Meanwhile, stocks are near their correction territory markers. Joseph Brusuelas, principal and chief economist at RSM US, noted that the U.S. one-year breakeven inflation rate has moved to 5.32%. “As the supply constraint caused by the war evolves from disruption to destruction of oil production and refining capacity, one should anticipate inflation and the possibility of rising interest rates in its wake,” the economist warned, predicting “a very mean year” ahead. Still, some perspective may be warranted. The S&P 500 ( SP500 ) is now down 7.6% from its January peak, a figure Charlie Bilello, chief market strategist at Creative Planning, says is “right in line with the median correction off an all-time high since the March 2009 low.” According to Bilello, “That’s the price of admission.” Nonetheless, Friday concluded a decidedly alarmist week that left all equity indices ( SP500 ), ( DJI ), ( COMP:IND ) in the red, but King remains cautiously optimistic. “The bulls are not down and out, as resilience in Bitcoin ( BTC-USD ), Ether ( ETH-USD ), and semiconductors ( SMH ), ( SOXX ), ( SOXL ) [are] evidence.” “We anticipate a liquidity-driven rally in the face of the fear,” he said. More on the markets The 'Monetary Truman Show' Is Over: The Fed Is No Longer In Control Dow Jones And U.S. Stock Market Outlook - U.S. Yields Explode, Dampening Investor Sentiment ...
(RTTNews) - Extending the nosedive seen over the two previous sessions, Canadian stocks plunged on Friday as inflationary concerns due to the intensifying gulf war pressured investors away from risky assets. After opening below yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly negative before settling at 31,317.23, up by 537.75 points (or 1.69%). Of the 11 sectors, only ...
(RTTNews) - Extending the nosedive seen over the two previous sessions, Canadian stocks plunged on Friday as inflationary concerns due to the intensifying gulf war pressured investors away from risky assets. After opening below yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly negative before settling at 31,317.23, up by 537.75 points (or 1.69%). Of the 11 sectors, only Consumer Staples posted gains today. The U.S.-Israel versus Iran war entered day number twenty-one. Today, Kuwait's largest oil refinery, Mina al-Ahmadi, which processes around 730,000 barrels of oil per day, was struck by Iran, leading to the shutdown of several of its units. Following Israel's massive attacks on Iran's South Pars gas field, Iran conducted strikes on Qatar's largest LNG plant, Ras Laffan. The facility suffered extensive damage, with the resumption of operations estimated to begin only after a year. Iran warned that it will show "zero restraint" if its facilities are attacked again. With an end to the conflict, becoming unpredictable, the spike in crude oil prices and the resultant inflation concerns, along with vanishing expectations of any rate cut in the near-term, have forced investors to avoid making "big" investments. The Strait of Hormuz, a narrow waterway off Iran's coastal region remains blocked for vessels carrying oil and energy from Arab nations. The U.S. Federal Reserve held interest rates at the current 3.50% to 3.75% range on Wednesday. Market participants have canceled their bets on lowering of interest rates by the Fed, with many of them anticipating a rate hike this year. The CME Group's FedWatch Tool was last seen indicating that traders were betting on a 12.40% chance of a "quarter-point rate hike" at the April meeting. Other central banks globally have followed suit, expressing concerns about the impact of skyrocketing crude oil prices on national economies and the inflationary effects. On Wednesday, the Bank of Canada elected to hold i...
JHVEPhoto Bank of Nova Scotia ( BNS ) ( BNS:CA ) is planning to raise its stake in KeyCorp ( KEY ) to up to 19.99% with the acquisition of additional voting shares, Bloomberg News reported . Prior to this, the company had permission for a 14.99% interest, the Friday, March 20, report noted, citing a regulatory filing. The stake increase does not indicate any changes in the nature of the two compan...
JHVEPhoto Bank of Nova Scotia ( BNS ) ( BNS:CA ) is planning to raise its stake in KeyCorp ( KEY ) to up to 19.99% with the acquisition of additional voting shares, Bloomberg News reported . Prior to this, the company had permission for a 14.99% interest, the Friday, March 20, report noted, citing a regulatory filing. The stake increase does not indicate any changes in the nature of the two companies' relationship, a KeyCorp spokesperson reportedly said. More on The Bank of Nova Scotia, KeyCorp Scotiabank: Stable Q1 Results, But Cyclical Support Has Likely Been Priced-In The Bank of Nova Scotia (BNS:CA) Q1 2026 Earnings Call Transcript The Bank of Nova Scotia 2026 Q1 - Results - Earnings Call Presentation KeyCorp upgraded to Neutral at Baird after selloff makes valuation more reasonable Bank of Nova Scotia reports higher FQ1 earnings on growth across all business lines
NASA has taken a step forward to moving an undetermined spacecraft of a various size on an indefinite date to a yet-to-be-decided location. Or to put it another way: NASA is seeking to learn more about what it would take to remove the space shuttle Discovery from the Smithsonian in Virginia and relocate it to Houston, as compared to transporting a smaller space capsule from anywhere in the country...
NASA has taken a step forward to moving an undetermined spacecraft of a various size on an indefinite date to a yet-to-be-decided location. Or to put it another way: NASA is seeking to learn more about what it would take to remove the space shuttle Discovery from the Smithsonian in Virginia and relocate it to Houston, as compared to transporting a smaller space capsule from anywhere in the country. The space agency on Thursday (March 19) released a draft request for proposal (DRFP) for the "NASA Flown Space Vehicle Multimodal Transportation Multiple Award Contract," seeking to learn how contractors would approach transporting both "large aerospace vehicles and smaller spacecraft capsules." Read full article Comments
Large language models are running into limits in domains that require an understanding of the physical world — from robotics to autonomous driving to manufacturing. That constraint is pushing investors toward world models , with AMI Labs raising a $1.03 billion seed round shortly after World Labs secured $1 billion . Large language models (LLMs) excel at processing abstract knowledge through next-...
Large language models are running into limits in domains that require an understanding of the physical world — from robotics to autonomous driving to manufacturing. That constraint is pushing investors toward world models , with AMI Labs raising a $1.03 billion seed round shortly after World Labs secured $1 billion . Large language models (LLMs) excel at processing abstract knowledge through next-token prediction, but they fundamentally lack grounding in physical causality. They cannot reliably predict the physical consequences of real-world actions. AI researchers and thought leaders are increasingly vocal about these limitations as the industry tries to push AI out of web browsers and into physical spaces. In an interview with podcaster Dwarkesh Patel , Turing Award recipient Richard Sutton warned that LLMs just mimic what people say instead of modeling the world, which limits their capacity to learn from experience and adjust themselves to changes in the world. This is why models based on LLMs, including vision-language models (VLMs), can show brittle behavior and break with very small changes to their inputs. Google DeepMind CEO Demis Hassabis echoed this sentiment in another interview, pointing out that today's AI models suffer from “jagged intelligence.” They can solve complex math olympiads but fail at basic physics because they are missing critical capabilities regarding real-world dynamics. To solve this problem, researchers are shifting focus to building world models that act as internal simulators, allowing AI systems to safely test hypotheses before taking physical action. However, “world models” is an umbrella term that encompasses several distinct architectural approaches. That has produced three distinct architectural approaches, each with different tradeoffs. JEPA: built for real-time The first main approach focuses on learning latent representations instead of trying to predict the dynamics of the world at the pixel level. Endorsed by AMI Labs, this...
What Happened? A number of stocks fell in the afternoon session after federal prosecutors charged a Super Micro Computer co-founder with conspiring to smuggle billions of dollars in AI chips to China. The news of federal export control violations triggered a sharp selloff, with Super Micro's shares cratering over 28%. The charges created broader anxiety across the AI semiconductor industry, contri...
What Happened? A number of stocks fell in the afternoon session after federal prosecutors charged a Super Micro Computer co-founder with conspiring to smuggle billions of dollars in AI chips to China. The news of federal export control violations triggered a sharp selloff, with Super Micro's shares cratering over 28%. The charges created broader anxiety across the AI semiconductor industry, contributing to declines in other major chip stocks like AMD. This development exacerbated a wider downturn in the tech-heavy Nasdaq, as investors reacted to the serious allegations and the potential for stricter regulations on advanced technology exports. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Processors and Graphics Chips company Lattice Semiconductor (NASDAQ:LSCC) fell 4.1%. Is now the time to buy Lattice Semiconductor? Access our full analysis report here, it’s free. Analog Semiconductors company Himax (NASDAQ:HIMX) fell 3.4%. Is now the time to buy Himax? Access our full analysis report here, it’s free. Zooming In On Lattice Semiconductor (LSCC) Lattice Semiconductor’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 4 days ago when the stock gained 5.6% on the news that investor enthusiasm for the artificial intelligence hardware boom, fueled by key company announcements and anticipation for Nvidia's GTC 2026 conference. The sector experienced a significant uplift as the industry pivoted toward hardware-led innovation. Analysts at Frost & Sullivan have also highlighted that 2026 is expected to feature a shift towards hardware, with next-generation semiconductors enabling faster and more efficient AI processing...
Federal prosecutors ask to dismiss charges against officers in Breonna Taylor raid toggle caption Amy Harris/Invision/AP/Invision LOUISVILLE, Ky. — Federal prosecutors asked a judge Friday to dismiss the charges against two Louisville officers accused of falsifying the warrant that led police to raid Breonna Taylor's apartment the night she was killed six years ago. Prosecutors said in a court fil...
Federal prosecutors ask to dismiss charges against officers in Breonna Taylor raid toggle caption Amy Harris/Invision/AP/Invision LOUISVILLE, Ky. — Federal prosecutors asked a judge Friday to dismiss the charges against two Louisville officers accused of falsifying the warrant that led police to raid Breonna Taylor's apartment the night she was killed six years ago. Prosecutors said in a court filing that their review of the case showed the charges against former Detective Joshua Jaynes and former Sgt. Kyle Meany should be "dismissed in the interest of justice." Judges have twice reduced a felony charge against each officer to a misdemeanor, saying there wasn't a direct link between the false information in the warrant and Taylor's death. Prosecutors said after the second ruling that they had decided to drop the cases. Sponsor Message "We are elated with this development," said Travis Lock, an attorney for Jaynes. Meany's lawyer, Michael Denbow, said he is "incredibly grateful for today's filing." Meany "is looking forward to putting this matter behind him and moving forward with his life," he said. Taylor, 26, was shot to death by police when they broke down the door of her apartment while serving a no-knock drug warrant looking for a former boyfriend who no longer lived there. Taylor's boyfriend at the time fired at the officers, and Taylor was killed as police fired back. The March 13, 2020, death of Taylor, who was Black, and local anger over Louisville's handling of the case gained widespread attention during the wave of racial justice protests sparked by the police murder of George Floyd in Minneapolis that May. Six years on, activists continue to point to Taylor's killing as an example of the systemic injustice Black women face. Federal prosecutors under former President Joe Biden pressed charges against the officers. Under President Donald Trump, though, the Department of Justice asked that Brett Hankison, the only officer serving prison time related to Tayl...
On February 17, 2026, Oaktree Capital Management reported selling 14,800,000 shares of Garrett Motion (GTX 2.47%), an estimated $235.64 million trade based on quarterly average pricing. Garrett Motion designs turbochargers and electric-boosting systems for global automotive manufacturers and aftermarket distributors. Oaktree Capital Management sold 14,800,000 shares of Garrett Motion at an estimat...
On February 17, 2026, Oaktree Capital Management reported selling 14,800,000 shares of Garrett Motion (GTX 2.47%), an estimated $235.64 million trade based on quarterly average pricing. Garrett Motion designs turbochargers and electric-boosting systems for global automotive manufacturers and aftermarket distributors. Oaktree Capital Management sold 14,800,000 shares of Garrett Motion at an estimated price of $235.64 million based on average quarterly pricing. The quarter-end position value decreased by around $136.4 million, reflecting both sales and share price movements The transaction represented roughly a 3.35% change in 13F reportable AUM Following the transaction, Oaktree still held 17,094,816 shares valued at $297.96 million Garrett Motion now accounts for 4.24% of fund AUM, placing it as Oaktree’s fifth-largest holding. What happened According to an SEC filing dated February 17, 2026, Oaktree Capital Management reduced its Garrett Motion holdings by 14,800,000 shares during the fourth quarter of 2025. The estimated transaction value is $235.64 million, calculated using the average unadjusted closing price in the quarter. The quarter-end position value decreased by $136.44 million, which incorporates both sales and market price changes. What else to know This was a sizable sale, but Garrett Motion still representing 4.25% of Oaktree’s 13F reportable AUM after the trade, its fifth largest holding. Top holdings after the filing: NASDAQ:EXE: $558.68 million (8.1% of AUM) NASDAQ:TRMD: $527.29 million (7.5% of AUM) NYSE:AU: $328.16 million (4.7% of AUM) NASDAQ:SMH: $311.51 million (4.4% of AUM) NASDAQ:GTX: $297.96 million (4.25% of AUM) As of March 19, 2026, shares of Garrett Motion were priced at $17.40, up 89.5% over the past year, which bested the S&P 500 by about 75%. Company Overview Metric Value Revenue (TTM) $3.54 billion Net Income (TTM) $310.00 million Dividend Yield 1.84% Price (as of market close 3/19/26) $17.40 Company Snapshot GTX designs and manufact...
Micron Technology's (MU) stellar fiscal second quarter has reignited bullish sentiment on Wall Street, with analysts rushing to raise their price targets. Strong AI-driven demand, tight memory supply, and expanding margins have put all of the limelight on Micron’s growth story, prompting Barclays to set a new high price estimate of $675. Micron has had a massive run of more than 300% over the past...
Micron Technology's (MU) stellar fiscal second quarter has reignited bullish sentiment on Wall Street, with analysts rushing to raise their price targets. Strong AI-driven demand, tight memory supply, and expanding margins have put all of the limelight on Micron’s growth story, prompting Barclays to set a new high price estimate of $675. Micron has had a massive run of more than 300% over the past year. Can MU stock continue its momentum and reach new highs? New Price Upgrades for MU Stock Valued at $500 billion by market capitalization, Micron is a semiconductor company that makes memory and storage chips. It has become a key player amid the growing demand for AI and cloud computing, with core products spanning DRAM, NAND and high-bandwidth memory (HBM), power data centers, AI systems, smartphones, PCs, cars, and industrial devices. Despite a blowout quarter, MU stock is down 5% as of this writing, a reaction that often reflects market positioning rather than weakness in fundamentals. So far this year, the stock is up 46% — and if Barclays analyst Thomas O’Malley’s projections prove correct, MU stock could surge 60% from current levels. Aside from Barclays, numerous other firms have boosted their price targets for this AI stock. KeyBanc and Rosenblatt Securities raised their price targets to $600 with “Buy” ratings. Separately, JPMorgan, Wedbush, Wells Fargo, TD Cowen, Deutsche Bank, and a few others increased their target prices to $550. Many other firms have followed suit. AI Demand Reshapes the Memory Industry The surge in analyst optimism is rooted in Micron’s extraordinary Q2 fiscal 2026 results. Total revenue climbed to $23.9 billion, up 196% year-over-year (YOY) and 75% over the first quarter. This marked Micron's fourth consecutive quarterly record of revenue growth. DRAM remained the primary growth engine, generating $18.8 billion in revenue and accounting for 79% of total sales. NAND also delivered a strong performance, with revenue reaching $5 billion. P...
Micron Technology's (MU) stellar fiscal second quarter has reignited bullish sentiment on Wall Street, with analysts rushing to raise their price targets. Strong AI-driven demand, tight memory supply, and expanding margins have put all of the limelight on Micron’s growth story, prompting Barclays to set a new high price estimate of $675. Micron has had a massive run of more than 300% over the past...
Micron Technology's (MU) stellar fiscal second quarter has reignited bullish sentiment on Wall Street, with analysts rushing to raise their price targets. Strong AI-driven demand, tight memory supply, and expanding margins have put all of the limelight on Micron’s growth story, prompting Barclays to set a new high price estimate of $675. Micron has had a massive run of more than 300% over the past year. Can MU stock continue its momentum and reach new highs? More News from Barchart www.barchart.com New Price Upgrades for MU Stock Valued at $500 billion by market capitalization, Micron is a semiconductor company that makes memory and storage chips. It has become a key player amid the growing demand for AI and cloud computing, with core products spanning DRAM, NAND and high-bandwidth memory (HBM), power data centers, AI systems, smartphones, PCs, cars, and industrial devices. Despite a blowout quarter, MU stock is down 5% as of this writing, a reaction that often reflects market positioning rather than weakness in fundamentals. So far this year, the stock is up 46% — and if Barclays analyst Thomas O’Malley’s projections prove correct, MU stock could surge 60% from current levels. Aside from Barclays, numerous other firms have boosted their price targets for this AI stock. KeyBanc and Rosenblatt Securities raised their price targets to $600 with “Buy” ratings. Separately, JPMorgan, Wedbush, Wells Fargo, TD Cowen, Deutsche Bank, and a few others increased their target prices to $550. Many other firms have followed suit. AI Demand Reshapes the Memory Industry The surge in analyst optimism is rooted in Micron’s extraordinary Q2 fiscal 2026 results. Total revenue climbed to $23.9 billion, up 196% year-over-year (YOY) and 75% over the first quarter. This marked Micron's fourth consecutive quarterly record of revenue growth. DRAM remained the primary growth engine, generating $18.8 billion in revenue and accounting for 79% of total sales. NAND also delivered a strong perform...
Micron Technology's (MU) stellar fiscal second quarter has reignited bullish sentiment on Wall Street, with analysts rushing to raise their price targets. Strong AI-driven demand, tight memory supply, and expanding margins have put all of the limelight on Micron’s growth story, prompting Barclays to set a new high price estimate of $675. Micron has had a massive run of more than 300% over the past...
Micron Technology's (MU) stellar fiscal second quarter has reignited bullish sentiment on Wall Street, with analysts rushing to raise their price targets. Strong AI-driven demand, tight memory supply, and expanding margins have put all of the limelight on Micron’s growth story, prompting Barclays to set a new high price estimate of $675. Micron has had a massive run of more than 300% over the past year. Can MU stock continue its momentum and reach new highs? New Price Upgrades for MU Stock Valued at $500 billion by market capitalization, Micron is a semiconductor company that makes memory and storage chips. It has become a key player amid the growing demand for AI and cloud computing, with core products spanning DRAM, NAND and high-bandwidth memory (HBM), power data centers, AI systems, smartphones, PCs, cars, and industrial devices. Despite a blowout quarter, MU stock is down 5% as of this writing, a reaction that often reflects market positioning rather than weakness in fundamentals. So far this year, the stock is up 46% — and if Barclays analyst Thomas O’Malley’s projections prove correct, MU stock could surge 60% from current levels. Aside from Barclays, numerous other firms have boosted their price targets for this AI stock. KeyBanc and Rosenblatt Securities raised their price targets to $600 with “Buy” ratings. Separately, JPMorgan, Wedbush, Wells Fargo, TD Cowen, Deutsche Bank, and a few others increased their target prices to $550. Many other firms have followed suit. AI Demand Reshapes the Memory Industry The surge in analyst optimism is rooted in Micron’s extraordinary Q2 fiscal 2026 results. Total revenue climbed to $23.9 billion, up 196% year-over-year (YOY) and 75% over the first quarter. This marked Micron's fourth consecutive quarterly record of revenue growth. DRAM remained the primary growth engine, generating $18.8 billion in revenue and accounting for 79% of total sales. NAND also delivered a strong performance, with revenue reaching $5 billion. P...
rs-photo/iStock via Getty Images Over the years, we've reviewed a handful of products in the private credit space and leveraged loans market here on Seeking Alpha, including funds like Oxford Lane ( OXLC ), Ares Capital ( ARCC ), and Eagle Point ( ECC ). We've generally shared our aversion for a lot of these securities in this sector of the market, given the many associated tail risks and fee stru...
rs-photo/iStock via Getty Images Over the years, we've reviewed a handful of products in the private credit space and leveraged loans market here on Seeking Alpha, including funds like Oxford Lane ( OXLC ), Ares Capital ( ARCC ), and Eagle Point ( ECC ). We've generally shared our aversion for a lot of these securities in this sector of the market, given the many associated tail risks and fee structures that investors may not realize exist in the search for high-yield "opportunities." Fast forward to today, and some of the skepticism may have been justified with certain parts of the leveraged loan market, like certain leveraged CLO Equity funds being down 50%, with most publicly traded business development companies, or BDCs ( BIZD ), down 20%, and most operators having taken an even bigger haircut while the S&P 500 ( SP500 ) remains near its all-time highs. Data by YCharts Given some of the current negative developments in the private credit market, we will assess the current liquidity crisis, triggered by both a crisis of confidence in collateral in the general market and the threat of disruption from AI in the software sector, and examine what this means for the future of Blue Owl Capital Corporation ( OBDC ). In addition, we will also evaluate some concerns recently raised by the CEO of JPMorgan for the industry and compare them with OBDC's loan portfolio to explain why we believe the current discount to NAV is largely justified, given the risks currently facing the industry. A Rising Tide Lifts All Boats In a recent investor's day call from JPMorgan Chase ( JPM ), CEO Jamie Dimon issued a grim warning for investors in private credit, signaling his worries about broader complacency in the space, which furthered the selloff in the BDC and leveraged loan space this week, citing that: Unfortunately, we did see this in 2005 and 2006 and 2007, almost the same thing. The rising tide lifting all boats. Everyone was making a lot of money. People were leveraging to the h...
Since Operation Epic Fury began nearly three weeks ago, markets have broadly clung to a comforting bet: that the disruption to oil supply would be brief, the Strait of Hormuz would reopen, and the Federal Reserve’s monetary-easing cycle would resume. On Friday, that bet broke. Stocks and bonds sold off together. Gold headed for its worst week since 1983. At one point, traders priced in a coin-flip...
Since Operation Epic Fury began nearly three weeks ago, markets have broadly clung to a comforting bet: that the disruption to oil supply would be brief, the Strait of Hormuz would reopen, and the Federal Reserve’s monetary-easing cycle would resume. On Friday, that bet broke. Stocks and bonds sold off together. Gold headed for its worst week since 1983. At one point, traders priced in a coin-flip chance the Fed’s next move is a hike, not a cut. The S&P 500 extended its longest weekly losing streak in a year. Markets have been stress-tested since the conflict broke out. But this week marks an escalation, with US officials signaling the White House is sending hundreds of Marines to the Middle East as it weighs a plan to seize Iran’s Kharg Island oil export hub. Brent crude hovering around $110 a barrel is no longer a temporary spike — it’s a persistent threat that investors, central bankers and business leaders are being forced to reckon with. The Federal Reserve held rates steady on Wednesday while Chair Jerome Powell made clear that the oil shock has made the inflation outlook too murky to render a timeline for easing. European central banks face a grimmer version of the same problem: frozen in place as energy-driven inflation blocks the rate cuts that a deteriorating growth outlook increasingly demands. “This past week has been a reckoning period where all corners of the market are finally coming to grips with the reality that not only is the conflict going to be a long one with an indeterminate ending, but one that has now involved the worst case scenario: a direct assault on all energy infrastructure in the region,” said Mark Malek , chief investment officer at Siebert Financial. Cross-market stress is building at the fastest pace since last year’s tariff shock, according to a Bank of America index. Trades across equities and credit that were built on the expectation of lower rates are unwinding simultaneously, and emerging markets are buckling. Investor angst o...
Following a monster performance in 2021, the initial public offering (IPO) market has cooled down over the last few years. But thanks to soaring valuations among private companies -- primarily artificial intelligence (AI) start-ups -- several unicorns are considering making their public market debuts this year. In late January, Elon Musk's AI start-up xAI completed a $1.25 trillion merger with Spa...
Following a monster performance in 2021, the initial public offering (IPO) market has cooled down over the last few years. But thanks to soaring valuations among private companies -- primarily artificial intelligence (AI) start-ups -- several unicorns are considering making their public market debuts this year. In late January, Elon Musk's AI start-up xAI completed a $1.25 trillion merger with SpaceX. Following the deal, discussions are swirling around a potential IPO of the combined business. A SpaceX IPO will almost undoubtedly come with enormous investor demand and exclusivity -- preventing retail investors from enjoying the action. But guess what? You don't need to wait for SpaceX to hit the public exchanges. Believe it or not, anyone can own a piece of Musk's trillion-dollar empire right now for just a few hundred bucks. Here's how. What is the best way to invest in SpaceX? To date, SpaceX has raised $11.9 billion of funding. While much of this has come from venture capital and private equity firms, a number of corporations have also invested in the company. Perhaps the most recognizable brand on SpaceX's investor roster is Alphabet's (GOOGL 2.01%) (GOOG 2.25%) Google. The internet giant has been an investor in SpaceX since 2015 -- participating in a $1 billion funding round at the time. If you're a retail investor, I think investing in Google parent Alphabet is both the easiest and best way to gain exposure to SpaceX. Alphabet is an incredibly diversified company whose ecosystem spans advertising, consumer electronics, autonomous driving, cloud computing, artificial intelligence (AI), and, of course, space exploration via its ownership stakes in SpaceX and AST SpaceMobile. What ETFs own SpaceX? Exchange-traded funds (ETFs) are baskets of stocks that investors can buy to gain passive exposure to market themes and industry sectors. Some ETFs carry more complex structures -- holding equity in private companies in addition to public stocks. Some ETFs that hold pos...
Key Points Earlier this year, Elon Musk merged two of his largest businesses: xAI and SpaceX. Investors who may not have access to the SpaceX IPO can still invest in the company through a number of different ways. Certain companies and money managers offer investors exposure to SpaceX stock. 10 stocks we like better than Alphabet › Following a monster performance in 2021, the initial public offeri...
Key Points Earlier this year, Elon Musk merged two of his largest businesses: xAI and SpaceX. Investors who may not have access to the SpaceX IPO can still invest in the company through a number of different ways. Certain companies and money managers offer investors exposure to SpaceX stock. 10 stocks we like better than Alphabet › Following a monster performance in 2021, the initial public offering (IPO) market has cooled down over the last few years. But thanks to soaring valuations among private companies -- primarily artificial intelligence (AI) start-ups -- several unicorns are considering making their public market debuts this year. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » In late January, Elon Musk's AI start-up xAI completed a $1.25 trillion merger with SpaceX. Following the deal, discussions are swirling around a potential IPO of the combined business. A SpaceX IPO will almost undoubtedly come with enormous investor demand and exclusivity -- preventing retail investors from enjoying the action. But guess what? You don't need to wait for SpaceX to hit the public exchanges. Believe it or not, anyone can own a piece of Musk's trillion-dollar empire right now for just a few hundred bucks. Here's how. What is the best way to invest in SpaceX? To date, SpaceX has raised $11.9 billion of funding. While much of this has come from venture capital and private equity firms, a number of corporations have also invested in the company. Perhaps the most recognizable brand on SpaceX's investor roster is Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google. The internet giant has been an investor in SpaceX since 2015 -- participating in a $1 billion funding round at the time. If you're a retail investor, I think investing in Google parent Alphabet is both the easiest and best way to gain exposure to Sp...
And Then The World Changed... Authored by James Howard Kunstler, "Europe’s own regulatory architecture turned off Europe’s own energy supply. And America. . . on the other side of the Atlantic with a full tank of gas, watched it happen.” - Jeff Childers Let’s pause for a moment amid all the excitement to address an abiding mystery of these times: why does the news media seem to be rooting for Amer...
And Then The World Changed... Authored by James Howard Kunstler, "Europe’s own regulatory architecture turned off Europe’s own energy supply. And America. . . on the other side of the Atlantic with a full tank of gas, watched it happen.” - Jeff Childers Let’s pause for a moment amid all the excitement to address an abiding mystery of these times: why does the news media seem to be rooting for American failure in the Iran operation? Or more generally, how did the media become handmaiden to the Lefty-left and all its ancillaries? How were they lured into their Cloward-Piven bunker of crypto-Marxian “resistance”? It’s unlikely that the network executives, news producers, and editors are communists outright. That would take you into a simpleminded John Birch Society fantasyland. Or did they just read too much Antonio Gramsci on campus back in the day? If they’re merely whores pandering to an audience, it’s a dwindling one as the Woke mass formation dissolves and the insanity of its agenda stands naked. (Why not pander to the growing demographic that yearns for a restoration of normality?) Is the news controlled by the so-called Deep State? Do cadres in the CIA send headlines to the Washington Post newsroom? Many think so. I don’t pretend to know one way or the other. The problem with lying, of course, is that you have to keep lying to protect your previous lies. Does the rise of alt-news across the Internet provoke them to lie harder in the face of better narratives? Or is it just plain old group-think, fear of stepping out-of-sync with tribal certainties and shibboleths? Which is to say, are they merely cowards and cads? Do they really believe in the totalizing bad faith of the Democratic Party in its naked racketeering and power-seeking? That’s a sinking ship — the party that is now battling to obstruct simple straightforward election reform in the US Senate. Here’s a headline from today’s New York Times : What will The New York Times do when bona fide, convincing evi...