What we’re reading (3/3)
“Trump Says Canada-Mexico Tariffs Will Take Effect, ‘No Room Left’ For Talks” (Wall Street Journal). “President Trump said the U.S. would go ahead with 25% tariffs on goods from Canada and Mexico effective Tuesday, declaring there was ‘no room left’ for negotiations with America’s neighbors…U.S. stocks fell in afternoon trading after Trump said the tariffs would move forward.”
“Hedge funds’ Growing Divide” (Business Insider). “For the first time, scale benefits both the manager and the LP, and the result is four managers with overwhelming clout. Business Insider talked to more than a dozen fund founders, allocators, and industry experts, such as top prime brokers and recruiters, to understand how smaller platforms plan to survive the unprecedented concentration of capital and talent and where allocators are turning in this new reality.”
“A Stock Market Rotation Is Underway. Will It Last?” (Morningstar). “The big rally in the stock market may have stalled, but there’s been lots of churn under the surface. The Morningstar US Market Index has slipped into the red this year, falling 0.25% since the beginning of January. Technology stocks, which were far and away the largest contributor to the big bull market in 2023 and 2024, have been the biggest drag on stock returns in 2025. Meanwhile, sectors like financial services, basic materials, and healthcare are seeing new investor interest. Non-US markets such as China, the United Kingdom, and Germany have also staged significant rallies. ‘Overall, there’s this subtle transition in leadership,’ says Michael Arone, chief investment strategist at State Street Global Advisors.”
“How Big Is The Stock Market’s America Bubble?” (Financial Times). “US stocks’ huge surge since the global financial crisis means they account for almost two-thirds of the world’s investable market, raising concerns about whether such dominance creates too much risk for investors’ portfolios. Wall Street has raced ahead of international rivals over the past decade and a half, driven largely by a rally in the tech sector — and particularly companies linked to artificial intelligence — which is now worth almost as much as all the stocks in Europe combined. But a recent pullback in tech shares has underlined the growing nervousness around soaring valuations in a market that has swallowed an ever larger share of global investors’ allocations.”
“BridgeBio Oncology To Go Public In SPAC Deal Bringing $450 Million-Plus For Trio Of Cancer Drugs” (Dealbreaker). “BridgeBio Oncology Therapeutics, a company working to advance the field of therapies addressing a validated but elusive group of cancer targets, has reached a deal to go public in a SPAC merger that brings more than $450 million to support clinical testing of three drug candidates. The merger agreement announced Friday is with Helix Acquisition Corp. II, a SPAC sponsored by affiliates of Cormorant Asset Management. When the deal closes, the combined company will take the BridgeBio Oncology Therapeutics name and is expected to trade on the Nasdaq under the stock symbol ‘BBOT.’”
