Latest news with #SecuritiesAndExchangeCommission
New York Times
a day ago
- Business
- New York Times
E.T.F.s Are Booming. Mutual Funds Want In on the Action.
Good morning. Andrew here. This Saturday, we take a deep dive into a potentially major shift in the investing world. Ian Frisch, who has been writing about surprising trends in business for a decade, takes us into the $30 trillion question of whether mutual funds can also market themselves as E.T.F.s. Plus, Calum Marsh, a DealBook contributor who has reported extensively on fitness trends and wrote an upcoming book about the history of CrossFit, speaks with the C.E.O. of Hyrox, a global fitness craze that wants to become an established sport. The modern market for exchange-traded funds has enabled retail investors to easily put money into basically anything. That includes various cryptocurrencies ($IBIT and $ETH), the investment strategies of Congressional Democrats ($NANC), pet-care brands ($PAWZ), and private equity funds with exposure to Elon Musk' s SpaceX ($XOVR) and OpenAI ($ARKVX). Mutual funds wish they could say the same. But the Securities and Exchange Commission long ago built a firewall between those funds, which are typically accessible through private investment companies, and E.T.F.s, which trade on public exchanges like single stocks. Want all of The Times? Subscribe.
Yahoo
a day ago
- Business
- Yahoo
Billionaire Dan Loeb Sold Third Point's Entire Stake in Tesla in Favor of a High-Yield Dividend Stock That's Doubled in Under 2 Years
Form 13Fs offer investors a quarterly snapshot of which stocks Wall Street's top money managers have been buying and selling. Though Tesla may have enjoyed a brief "Trump bump," a number of operating concerns have emerged. Meanwhile, billionaire Dan Loeb has piled into a slow-but-steadily-growing dividend stock whose shares have doubled since hitting their low in July 2023. These 10 stocks could mint the next wave of millionaires › Nothing is more valuable on Wall Street than data. The only problem for investors is that keeping atop the latest data releases is a daunting task that can allow something of importance to slip through the cracks. For example, what can arguably be described as the most important data dump of the second quarter occurred on May 15. But because it was at the start of earnings season and packaged so closely to important economic data releases from the federal government, investors might have overlooked the May 15 filing deadline for Form 13Fs with the Securities and Exchange Commission. A 13F is a required filing no later than 45 calendar days following the end to a quarter by institutional investors with at least $100 million in assets under management (AUM). It provides a concise snapshot of which stocks Wall Street's prominent money managers purchased and sold in the latest quarter. Even though 13Fs are far from perfect -- since they're filed up to 45 calendar days following the end to a quarter, they may present a stale snapshot for an active hedge fund -- they offer key insights as to which stocks and trends have piqued the interest of Wall Street's most-successful asset managers. While Warren Buffett is the stock market's most famous billionaire investor, he's not the only fund manager known for their phenomenal returns or key insights. Third Point's billionaire chief Dan Loeb is another asset manager with a keen eye for value that investors usually keep close tabs on. During the March-ended quarter, Loeb was a decisive seller of four "Magnificent Seven" stocks, perhaps none of which stands out more than Tesla (NASDAQ: TSLA). Meanwhile, the value-focused Loeb piled into a brand-name, high-yield dividend stock that's managed to double in value in less than two years. To preface this discussion, Dan Loeb operates a relatively active fund that ended the March quarter with more than $6.5 billion in AUM spread across 45 positions. Loeb's average hold time among these 45 positions is just 4.5 quarters, or roughly 13.5 months. In short, he's demonstrated a willingness to lock in gains when presented with a decisive move higher in a security. Between the third quarter of 2024, which is when Third Point first acquired shares of electric-vehicle (EV) maker Tesla, and the first quarter of 2025, which is when all 500,000 shares of Tesla were sold, this position, at one point, more than doubled in value. Loeb had ample incentive to lock in his fund's short-term gains. Based on the timing of Loeb's initial investment and selling activity, it's possible his fund's stake in Tesla was based on the expectation of the company benefiting from a Donald Trump victory in November. Tesla CEO Elon Musk was touted as having a role in the Trump administration -- he went on to be a special employee for the Department of Government Efficiency, or DOGE -- which was expected to be a positive for his company's long-term growth ambitions. But with this story having been played out, a number of red flags associated with Tesla's operations may have encouraged billionaire Dan Loeb to head for the hills. One of the more glaring issues with Tesla has been the company's declining vehicle margin. Though higher energy and storage revenue has helped to somewhat offset EV demand weakness, more than a half-dozen sweeping price cuts on Tesla's fleet of EVs from growing competition has sapped its vehicle margin. To add fuel to the fire, Tesla's Cybertruck looks to be a flop. Despite Musk previously claiming that his company had over 1 million reservations for Cybertruck, a recall announced in March of Cybertrucks manufactured from Nov. 13, 2023 to Feb. 27, 2025 showed this recall covered just shy of 46,100 vehicles. That's a far cry from "demand being off the charts," as Musk once touted. This speaks to the broader issue of Musk's innovations (usually) failing to materialize. While Musk has overseen the launch of a handful of new EVs and diversified Tesla into an energy generation and storage provider, his Level 5 autonomy claims by "next year" have fallen flat for 11 consecutive years. Furthermore, the initial robotaxi launch in Austin, TX, is limited to just 10 vehicles and geofenced to a small coverage area. If Musk's unfulfilled promises were backed out of Tesla's valuation, its share price, and astronomical forward price-to-earnings (P/E) ratio of almost 120, would plummet. However, Third Point's billionaire chief was also a buyer of select stocks during the March-ended quarter. Though nearly a dozen new positions were opened, arguably none stands out more than the 3,775,000 shares purchased of high-octane dividend stock AT&T (NYSE: T). Two years ago, investors seemingly wanted nothing to do with AT&T and large telecom companies. In July 2023, a report from The Wall Street Journal alleged that AT&T and other U.S. telecom companies had a network of legacy cables wrapped in toxic lead. The WSJ intimated that cleanup costs and health liabilities could be sizable for legacy telecom companies. Ultimately, AT&T and its peers refuted the findings of the report. Even if there is some form of future liability for America's legacy telecom providers, it's something that would almost certainly be determined in the U.S. court system, which is notoriously slow. What was viewed as a serious threat to AT&T in July 2023 quickly passed as short-term white noise. AT&T's shares have since doubled in value from their July 2023 lows. Although AT&T's best growth days are long gone, there are still catalysts working in the company's favor. For example, AT&T upgrading and steadily expanding the reach of its 5G network has resulted in ongoing postpaid phone additions and mobility sales growth that typically ranges in the low-to-mid single digits. Since access to a smartphone and the internet has effectively evolved into a basic necessity, AT&T is enjoying historically low postpaid phone churn rates that are below 1%. Additionally, there's been a resurgence in broadband signups since the rollout of 5G. AT&T has added at least 200,000 net customers to its broadband service for 21 consecutive quarters (more than five straight years) and is nearing 30 million cumulative consumer and business AT&T Fiber subscribers. Even with broadband no longer being the growth story it was when the century began, it's still a phenomenal source of operating cash flow and can be used as a tool to encourage high-margin service bundling. Perhaps best of all, AT&T has dramatically improved its financial flexibility since spinning out its content division, WarnerMedia, in 2022. This spinoff, which saw WarnerMedia merge with Discovery to create Warner Bros. Discovery, led to the assumption of certain debt lots by this new media entity. Whereas net debt for AT&T stood at $169 billion on March 31, 2022, it's fallen to $119.1 billion precisely three years later. Lastly, AT&T is dishing out a nearly 4% annual yield and sports a reasonable forward P/E ratio of 12.7 amid a historically pricey stock market. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $400,193!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,264!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $687,731!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 23, 2025 Sean Williams has positions in AT&T and Warner Bros. Discovery. The Motley Fool has positions in and recommends Tesla and Warner Bros. Discovery. The Motley Fool has a disclosure policy. Billionaire Dan Loeb Sold Third Point's Entire Stake in Tesla in Favor of a High-Yield Dividend Stock That's Doubled in Under 2 Years was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
2 days ago
- Business
- Globe and Mail
Billionaire Dan Loeb Sold Third Point's Entire Stake in Tesla in Favor of a High-Yield Dividend Stock That's Doubled in Under 2 Years
Nothing is more valuable on Wall Street than data. The only problem for investors is that keeping atop the latest data releases is a daunting task that can allow something of importance to slip through the cracks. For example, what can arguably be described as the most important data dump of the second quarter occurred on May 15. But because it was at the start of earnings season and packaged so closely to important economic data releases from the federal government, investors might have overlooked the May 15 filing deadline for Form 13Fs with the Securities and Exchange Commission. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » A 13F is a required filing no later than 45 calendar days following the end to a quarter by institutional investors with at least $100 million in assets under management (AUM). It provides a concise snapshot of which stocks Wall Street's prominent money managers purchased and sold in the latest quarter. Even though 13Fs are far from perfect -- since they're filed up to 45 calendar days following the end to a quarter, they may present a stale snapshot for an active hedge fund -- they offer key insights as to which stocks and trends have piqued the interest of Wall Street's most-successful asset managers. While Warren Buffett is the stock market's most famous billionaire investor, he's not the only fund manager known for their phenomenal returns or key insights. Third Point's billionaire chief Dan Loeb is another asset manager with a keen eye for value that investors usually keep close tabs on. During the March-ended quarter, Loeb was a decisive seller of four "Magnificent Seven" stocks, perhaps none of which stands out more than Tesla (NASDAQ: TSLA). Meanwhile, the value-focused Loeb piled into a brand-name, high-yield dividend stock that's managed to double in value in less than two years. Billionaire Dan Loeb sent shares of Tesla to the chopping block To preface this discussion, Dan Loeb operates a relatively active fund that ended the March quarter with more than $6.5 billion in AUM spread across 45 positions. Loeb's average hold time among these 45 positions is just 4.5 quarters, or roughly 13.5 months. In short, he's demonstrated a willingness to lock in gains when presented with a decisive move higher in a security. Between the third quarter of 2024, which is when Third Point first acquired shares of electric-vehicle (EV) maker Tesla, and the first quarter of 2025, which is when all 500,000 shares of Tesla were sold, this position, at one point, more than doubled in value. Loeb had ample incentive to lock in his fund's short-term gains. Based on the timing of Loeb's initial investment and selling activity, it's possible his fund's stake in Tesla was based on the expectation of the company benefiting from a Donald Trump victory in November. Tesla CEO Elon Musk was touted as having a role in the Trump administration -- he went on to be a special employee for the Department of Government Efficiency, or DOGE -- which was expected to be a positive for his company's long-term growth ambitions. But with this story having been played out, a number of red flags associated with Tesla's operations may have encouraged billionaire Dan Loeb to head for the hills. One of the more glaring issues with Tesla has been the company's declining vehicle margin. Though higher energy and storage revenue has helped to somewhat offset EV demand weakness, more than a half-dozen sweeping price cuts on Tesla's fleet of EVs from growing competition has sapped its vehicle margin. To add fuel to the fire, Tesla's Cybertruck looks to be a flop. Despite Musk previously claiming that his company had over 1 million reservations for Cybertruck, a recall announced in March of Cybertrucks manufactured from Nov. 13, 2023 to Feb. 27, 2025 showed this recall covered just shy of 46,100 vehicles. That's a far cry from "demand being off the charts," as Musk once touted. This speaks to the broader issue of Musk's innovations (usually) failing to materialize. While Musk has overseen the launch of a handful of new EVs and diversified Tesla into an energy generation and storage provider, his Level 5 autonomy claims by "next year" have fallen flat for 11 consecutive years. Furthermore, the initial robotaxi launch in Austin, TX, is limited to just 10 vehicles and geofenced to a small coverage area. If Musk's unfulfilled promises were backed out of Tesla's valuation, its share price, and astronomical forward price-to-earnings (P/E) ratio of almost 120, would plummet. Loeb's Third Point has piled into an unstoppable high-yield dividend stock However, Third Point's billionaire chief was also a buyer of select stocks during the March-ended quarter. Though nearly a dozen new positions were opened, arguably none stands out more than the 3,775,000 shares purchased of high-octane dividend stock AT&T (NYSE: T). Two years ago, investors seemingly wanted nothing to do with AT&T and large telecom companies. In July 2023, a report from The Wall Street Journal alleged that AT&T and other U.S. telecom companies had a network of legacy cables wrapped in toxic lead. The WSJ intimated that cleanup costs and health liabilities could be sizable for legacy telecom companies. Ultimately, AT&T and its peers refuted the findings of the report. Even if there is some form of future liability for America's legacy telecom providers, it's something that would almost certainly be determined in the U.S. court system, which is notoriously slow. What was viewed as a serious threat to AT&T in July 2023 quickly passed as short-term white noise. AT&T's shares have since doubled in value from their July 2023 lows. Although AT&T's best growth days are long gone, there are still catalysts working in the company's favor. For example, AT&T upgrading and steadily expanding the reach of its 5G network has resulted in ongoing postpaid phone additions and mobility sales growth that typically ranges in the low-to-mid single digits. Since access to a smartphone and the internet has effectively evolved into a basic necessity, AT&T is enjoying historically low postpaid phone churn rates that are below 1%. Additionally, there's been a resurgence in broadband signups since the rollout of 5G. AT&T has added at least 200,000 net customers to its broadband service for 21 consecutive quarters (more than five straight years) and is nearing 30 million cumulative consumer and business AT&T Fiber subscribers. Even with broadband no longer being the growth story it was when the century began, it's still a phenomenal source of operating cash flow and can be used as a tool to encourage high-margin service bundling. Perhaps best of all, AT&T has dramatically improved its financial flexibility since spinning out its content division, WarnerMedia, in 2022. This spinoff, which saw WarnerMedia merge with Discovery to create Warner Bros. Discovery, led to the assumption of certain debt lots by this new media entity. Whereas net debt for AT&T stood at $169 billion on March 31, 2022, it's fallen to $119.1 billion precisely three years later. Lastly, AT&T is dishing out a nearly 4% annual yield and sports a reasonable forward P/E ratio of 12.7 amid a historically pricey stock market. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $400,193!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,264!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $687,731!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. *Stock Advisor returns as of June 23, 2025
Bloomberg
3 days ago
- Business
- Bloomberg
SEC Kicks Off Review of Rules Governing Executive Pay and Perks
The Securities and Exchange Commission is taking initial steps to consider overhauling rules governing disclosures of executive compensation, including banker pay and bonus clawbacks. The current compensation disclosures are 'a Frankenstein patchwork of rules' thanks to myriad updates over the past three decades, SEC Chairman Paul Atkins said in prepared remarks Thursday for a roundtable event on the topic in Washington. 'The outcome of our rules is not effective when companies require highly specialized lawyers and compensation consultants to prepare disclosure that the reasonable investor struggles to understand.'
Bloomberg
4 days ago
- Business
- Bloomberg
JC Flowers-Backed Jefferson Capital's IPO Raises $150 Million
Jefferson Capital Inc. and some of its backers raised $150 million in an initial public offering, pricing shares at the bottom of the range. The company, which buys charged-off consumer debt, and the investors sold 10 million shares for $15 apiece, according to a statement Wednesday. The shares were marketed in a range of $15 to $17 each, an earlier US Securities and Exchange Commission filing showed.
