What we’re reading (11/24)
“Bill Ackman’s $1 Billion Inflation Bet” (Institutional Investor). “[A]fter making $2.6 billion on his big Covid-19 short in 2020, this year another macro short of his is panning out: a $170 million bet on inflation that is now worth $1 billion…Pershing Square made its bet with options, taking a notional short position principally in shorter-dated maturities of U.S. Treasuries, as well as some longer ten-year dated debt, Ackman said.”
“JPMorgan's Dimon Says He Regrets China Communist Party Comment” (Reuters). “JPMorgan Chase Chief Executive Jamie Dimon said on Wednesday he regretted his remarks that the Wall Street bank would last longer than China's Communist Party, moving quickly to avoid any longer-term fallout.”
“More Chips Will Be Made In America Amid A Global Spending Surge” (Wall Street Journal). “The new factories won’t be operational for years. But the investment promises to boost America’s production foothold in advanced chip making after decades of ceding ground to locations in Asia like Taiwan, South Korea and China. It comes at a time, though, when chip makers are investing heavily in these locations, too”
“Rivian’s IPO Enriched Hedge Fund Third Point” (Barron’s). “The Financial Times reported that Dan Loeb’s hedge fund Third Point has made hundreds of millions of dollars on its stake in electric-truck startup Rivian Automotive. Early investors making a mint isn’t all that surprising. But it does show the benefits of being a well-placed institutional investor. Third Point has made an estimated profit of as much as $300 million, according to the report.”
“Wall Street Grudgingly Allows Remote Work As Bankers Dig In” (New York Times). “Wall Street is in revolt. Across the financial industry, at firms big and small, workers are slow-walking their return to the office. Bankers for whom working from home was once unfathomable now can’t imagine going back to the office full-time. Parents remain worried about transmitting the coronavirus to their children. Suburban dwellers are chafing at the thought of resuming long commutes. And many younger employees prefer to work remotely.”
