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Feb 16
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AVOID
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Adam Lynn
Market Strategist / Guest Speaker
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"We've seen some of these asset management companies, these software companies, which is getting attacked... people are going to park in areas which aren't as exposed." The market is punishing sectors "adjacent" to the crowded AI trade that do not have the same earnings durability. As investors rotate into cyclicals (Europe) or pure hardware (Korea), high-multiple US software and asset managers are becoming sources of funds (sold to buy other assets). AVOID/SHORT due to rotation risk and negative price action ("getting attacked"). A resurgence in US bond yields dropping could reignite a bid for long-duration software assets. |
Bloomberg Markets
US Stocks to Lag European Peers on AI
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Feb 12
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LONG
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Leo Kamin
Asset Management Reporter, Bloomberg
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Nuveen buying Schroders. "US asset managers are increasingly looking at European players and UK players in particular because they trade at a slightly larger discount." The Schroders deal sets a precedent and valuation floor. Other independent UK/EU asset managers trading at discounts are now prime takeover targets for US giants seeking private market scale. Long potential M&A targets. Regulatory blocking of cross-border financial mergers. |
Bloomberg Markets
Stocks Climb; Nuveen to Buy Schroders; Anthro...
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