Latest news with #ThirdPoint
Yahoo
2 days ago
- Business
- Yahoo
Wall Street's Alpha Dogs Are Ditching Stocks for a $3 Trillion Goldmine
The lines between hedge funds and private credit titans are blurring fast. Millennium, Point72, and Third Point are now making bold moves into the booming $1.7 trillion private credit marketa space Moody's says could hit $3 trillion by 2028. These firms, long known for trading liquid assets like stocks and bonds, are shifting gears. Dan Loeb's Third Point is launching a publicly traded credit fund next month, focused on lending to private equity-owned companies. Millennium is reportedly weighing its first new fund in 30 years to chase longer-term, less liquid assets. And Point72? They've hired a full squad of senior names from Blackstone (NYSE:BX), Carlyle (NASDAQ:CG), and Brookfield to build out their credit team from scratch. Warning! GuruFocus has detected 4 Warning Signs with BX. Why the pivot? In a word: valuation. Loeb openly admits watching Apollo and Brookfield's market caps balloon was a turning point. I had to elbow my way into the party, he saidpersonally backing his new credit fund with over $100 million. For Steve Cohen at Point72, the move is about legacy. Why define myself as just a hedge fund? he asked earlier this year. It's not just about chasing yieldit's about repositioning these firms as modern financial powerhouses. With institutional investors demanding one-stop shops, private credit offers sticky capital, higher returns, and the kind of recurring fee streams Wall Street loves to value. But here's the catch: execution won't be easy. Veterans warn that lending is a very different game. DE Shaw, despite being years ahead, still only has $5 billion allocated to creditjust a sliver of its $65 billion AUM. Meanwhile, Apollo, Ares, and Blackstone have scale, relationships, and infrastructure. You can't just raise capital and say you're open for business, said one credit executive. In this arms race, Millennium, Point72, and Third Point might find out that breaking into private credit isn't about elbowing init's about proving you can actually stay at the table. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Wall Street's Alpha Dogs Are Ditching Stocks for a $3 Trillion Goldmine
The lines between hedge funds and private credit titans are blurring fast. Millennium, Point72, and Third Point are now making bold moves into the booming $1.7 trillion private credit marketa space Moody's says could hit $3 trillion by 2028. These firms, long known for trading liquid assets like stocks and bonds, are shifting gears. Dan Loeb's Third Point is launching a publicly traded credit fund next month, focused on lending to private equity-owned companies. Millennium is reportedly weighing its first new fund in 30 years to chase longer-term, less liquid assets. And Point72? They've hired a full squad of senior names from Blackstone (NYSE:BX), Carlyle (NASDAQ:CG), and Brookfield to build out their credit team from scratch. Warning! GuruFocus has detected 4 Warning Signs with BX. Why the pivot? In a word: valuation. Loeb openly admits watching Apollo and Brookfield's market caps balloon was a turning point. I had to elbow my way into the party, he saidpersonally backing his new credit fund with over $100 million. For Steve Cohen at Point72, the move is about legacy. Why define myself as just a hedge fund? he asked earlier this year. It's not just about chasing yieldit's about repositioning these firms as modern financial powerhouses. With institutional investors demanding one-stop shops, private credit offers sticky capital, higher returns, and the kind of recurring fee streams Wall Street loves to value. But here's the catch: execution won't be easy. Veterans warn that lending is a very different game. DE Shaw, despite being years ahead, still only has $5 billion allocated to creditjust a sliver of its $65 billion AUM. Meanwhile, Apollo, Ares, and Blackstone have scale, relationships, and infrastructure. You can't just raise capital and say you're open for business, said one credit executive. In this arms race, Millennium, Point72, and Third Point might find out that breaking into private credit isn't about elbowing init's about proving you can actually stay at the table. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Chicago Tribune
2 days ago
- Business
- Chicago Tribune
Editorial: Is Brandon Johnson pitching Wall Streeters on moving to Chicago post-Mamdani? We thought not.
The masters of the universe were in a lather last week after New York City Democrats nominated Zohran Mamdani — an honest-to-God, dyed-in-the-wool socialist — to be mayor of the finance capital of the country. There's now audible chatter in New York from that city's numerous titans of finance about doing what would have been unthinkable until recently — fleeing. Not that long ago New Yorkers would have rolled their eyes at such threats. Where else would a Wall Streeter want to be than the city where, er, Wall Street is located? But it's a new day. Interconnectivity and the electronic nature of most trading have allowed traders and big-time investors to set up shop in places like Miami and Dallas (where not coincidentally taxes are much lower than in New York and Chicago). Chicago feels your pain, New York. Our very own billionaire, Citadel founder Ken Griffin, moved the headquarters of his company (and himself) to Miami three years ago. So, given that we live in a competitive world and New York made the unforced error of nominating a socialist threatening to tax anything that moves, it would be nice if Chicago had a mayor that would allow us to join Miami, Dallas and others in pitching the hedge fund and private-equity mavens of New York on relocating to the shores of Lake Michigan. In many respects, there's no reason Chicago shouldn't be able to make a strong case. The city remains the global epicenter of futures and options trading and is home to Northern Trust, a member of the nation's highly exclusive club of custody banks. There's a substantial ecosystem of private-equity firms here as well, albeit not nearly at New York's scale. So why would the suggestion of Chicago as an alternative to Mamdani-led New York likely prompt a chuckle from most New York bigwigs? Because, of course, we have our own version of Mamdani sitting on the fifth floor. Imagine Brandon Johnson, if he were so inclined, placing a call to, say, Dan Loeb, the head of $12 billion-asset hedge fund Third Point who derisively tweeted after Mamdani's primary victory, 'It's officially hot commie summer.' Can't imagine that? Neither can we. It wasn't that long ago that Chicago was led by mayors who could (and would) have made that call and gotten a respectful hearing at the very least. Rahm Emanuel. Richard M. Daley. These were mayors who had their flaws, God knows, but understood the value of having extremely wealthy people live in their city and maintain businesses here. Such citizens provide outsize tax revenue. Such people create high-paying jobs filled by those who pay substantial taxes of their own. Such people donate very large sums of money to civic causes. Instead, Chicago has a mayor who repeatedly derides people like Griffin as the 'ultra-rich' and speaks of them only in the context of how much more the ever-dwindling set of them ought to be paying in taxes to buttress bloated governmental bodies whose budgets are wheezing on the fumes of a moldering city economy. There will be plenty of those on the left who say, 'Fine. We don't want more Ken Griffins here.' We disagree. Pick up the phone, Mr. Mayor.
Sydney Morning Herald
24-06-2025
- Business
- Sydney Morning Herald
New York is flirting with an economic catastrophe
Sure, voters like his pro-immigration stance, and in a city that has always been built on welcoming newcomers from all over the world, that will always be a popular position. But for anyone who owns or runs a business, the rest of his platform is, to put it mildly, frightening. He wants to impose an extra 2 per cent income tax on New Yorkers who earn more than $US1 million a year; double down on rent controls that are already very tight; raise the minimum wage; push up the city's top rate of corporation tax, on top of federal taxes, from 7.25 per cent to 11.5 per cent; launch government-run grocery stores; and introduce free childcare across the city. It is a big-state, high-tax agenda. With that manifesto, it is probably no surprise that 'Fix the City', the political action committee backing Cuomo to take on Mamdani, has attracted big money donations from people such as Michael Bloomberg, the billionaire former mayor, as well as financiers Bill Ackman, the founder of Pershing Square, and Dan Loeb, the founder of Third Point. If Mandami wins, there will be a 'flight of businesses from New York', argued Mr Ackman in a recent interview. Many of his Wall Street friends no doubt agree with that assessment. Even more than San Francisco or London, New York has always been the beating heart of global capitalism. It is the hub around which it revolves, the place where money is raised, capital deployed and ideas tried out. We already have a very good idea of what happens to even the greatest US cities once they fall under the control of the far-Left. San Francisco is not just a major banking centre, but it is also right next to Silicon Valley – the hub of America's all-conquering tech industry. And yet, under the radical London Breed, who served as the city's mayor from 2018 until earlier this year, San Francisco defunded its police force, allowed crime and homelessness to run rampant, drove out retailers and destroyed the city's reputation as a place to do business. Portland, in Oregon, witnessed a very similar trend, with Ted Wheeler, its radical mayor, diverting money from law enforcement into social activism. Indeed, we have witnessed the same dismal phenomenon on this side of the Atlantic, with Sir Sadiq Khan, the London Mayor, presiding over a rise in petty crime, fare dodging and homelessness that has eroded business confidence in the UK capital. If Mamdami takes power in New York, we can expect to see the same fate befall the city. In time, of course, the policies of the far-Left will prove to be so disastrous that the politicians imposing them are kicked out of power. In San Francisco, under Daniel Lurie, the new mayor, the streets are starting to become safe once again and the city is beginning to heal. The same has happened in Portland. We are, unfortunately, a long way from that point in London, but when Sir Sadiq is finally replaced, a new mayor may well be able to start the work of restoring the city to its former greatness. The trouble is, a huge amount of damage is done in the meantime. Higher income taxes in New York will lead to an exodus of millionaires out of the city to low or zero-tax cities and states, such as booming Miami, in Florida, or Dallas and Austin, in Texas. We can expect the banks and hedge funds to drift away from Wall Street to other financial centres. We can expect apartment prices to soar as rent controls force landlords to get out of the market, as they have done in every other major town or country where they have been attempted, while law enforcement will decline, and low-skilled immigrants will flood into the city. Loading In reality, New York is flirting with an economic catastrophe, and the reverberations of that will be felt right around the world. After all, this is not just any urban centre. Even more than San Francisco or London, New York has always been the beating heart of global capitalism. It is the hub around which it revolves, the place where money is raised, capital deployed and ideas tried out.
The Age
24-06-2025
- Business
- The Age
New York is flirting with an economic catastrophe
Sure, voters like his pro-immigration stance, and in a city that has always been built on welcoming newcomers from all over the world, that will always be a popular position. But for anyone who owns or runs a business, the rest of his platform is, to put it mildly, frightening. He wants to impose an extra 2 per cent income tax on New Yorkers who earn more than $US1 million a year; double down on rent controls that are already very tight; raise the minimum wage; push up the city's top rate of corporation tax, on top of federal taxes, from 7.25 per cent to 11.5 per cent; launch government-run grocery stores; and introduce free childcare across the city. It is a big-state, high-tax agenda. With that manifesto, it is probably no surprise that 'Fix the City', the political action committee backing Cuomo to take on Mamdani, has attracted big money donations from people such as Michael Bloomberg, the billionaire former mayor, as well as financiers Bill Ackman, the founder of Pershing Square, and Dan Loeb, the founder of Third Point. If Mandami wins, there will be a 'flight of businesses from New York', argued Mr Ackman in a recent interview. Many of his Wall Street friends no doubt agree with that assessment. Even more than San Francisco or London, New York has always been the beating heart of global capitalism. It is the hub around which it revolves, the place where money is raised, capital deployed and ideas tried out. We already have a very good idea of what happens to even the greatest US cities once they fall under the control of the far-Left. San Francisco is not just a major banking centre, but it is also right next to Silicon Valley – the hub of America's all-conquering tech industry. And yet, under the radical London Breed, who served as the city's mayor from 2018 until earlier this year, San Francisco defunded its police force, allowed crime and homelessness to run rampant, drove out retailers and destroyed the city's reputation as a place to do business. Portland, in Oregon, witnessed a very similar trend, with Ted Wheeler, its radical mayor, diverting money from law enforcement into social activism. Indeed, we have witnessed the same dismal phenomenon on this side of the Atlantic, with Sir Sadiq Khan, the London Mayor, presiding over a rise in petty crime, fare dodging and homelessness that has eroded business confidence in the UK capital. If Mamdami takes power in New York, we can expect to see the same fate befall the city. In time, of course, the policies of the far-Left will prove to be so disastrous that the politicians imposing them are kicked out of power. In San Francisco, under Daniel Lurie, the new mayor, the streets are starting to become safe once again and the city is beginning to heal. The same has happened in Portland. We are, unfortunately, a long way from that point in London, but when Sir Sadiq is finally replaced, a new mayor may well be able to start the work of restoring the city to its former greatness. The trouble is, a huge amount of damage is done in the meantime. Higher income taxes in New York will lead to an exodus of millionaires out of the city to low or zero-tax cities and states, such as booming Miami, in Florida, or Dallas and Austin, in Texas. We can expect the banks and hedge funds to drift away from Wall Street to other financial centres. We can expect apartment prices to soar as rent controls force landlords to get out of the market, as they have done in every other major town or country where they have been attempted, while law enforcement will decline, and low-skilled immigrants will flood into the city. Loading In reality, New York is flirting with an economic catastrophe, and the reverberations of that will be felt right around the world. After all, this is not just any urban centre. Even more than San Francisco or London, New York has always been the beating heart of global capitalism. It is the hub around which it revolves, the place where money is raised, capital deployed and ideas tried out.
