So let’s download the spreadsheets, fire up the old HP 12c, and dive right in.
1. It’s a difficult time to be picking stocks: rising interest rates, persistent inflation, a war in Europe, and growing talk of a recession. And after a first brutal half of the year in the market, please do not peek at your 401(k) if you are the least bit anxious.
In such a time of turmoil, institutional investors and other clients look to Wall Street firms to provide critical insights and analysis into what stocks and sectors can outperform the overall market.
We searched for the standouts among analysts no older than 35 who work in sell-side equity research in the US. The finalists were picked from nominations submitted by colleagues, bosses, and investors. Reporters interviewed each analyst.
In our top 16: One who was among the first to cover the cannabis sector, another who covers lithium, and several who went into research after trying other corners of the finance industry.
2. Jefferies CEO Richard Handler sought to address employees’ worries during a “yucky” period in the markets at a town hall last week. “People’s concerns are deep, emotional fatigue is real, and all of us are looking for comfort and confidence about the future,” the CEO wrote in a letter to staff.
3. Crypto’s crash has more after-shocks: Vauld, a crypto platform backed by Coinbase and others, announced on Monday that it would suspend all withdrawals, trading, and deposits on its platform. Vauld said in a blog post that customers had withdrawn more than $197.7 million since June 12. Voyager Digital has also suspended trading, deposits, withdrawals, and loyalty rewards. And the troubled crypto hedge fund Three Arrows Capital has filed for bankruptcy.
4. While the collapse in crypto has been brutal, it has been contained. “This contagion did not extend into the traditional banking and finance sector,” Michael Hsu, the acting US comptroller of the currency, tells the Financial Times.
5. Speaking of potential contagion, risk management is again front of mind for hedge funds and their investors given the volatility in markets. An increased focus on operational risk management is the biggest shift in a decade that the investment management firm SEI found in a survey of 79 hedge fund managers and 81 investors.
6. If the finance industry starts cutting jobs, the outsourcing industry stands to benefit. “Investment firms will tighten their belts because the cost of doing business is becoming more expensive, and one way to then still get the work done and not have to pay quite as much for it is by outsourcing,” Amy Lynch, founder and president of FrontLine Compliance, an outsourced compliance firm, tells Institutional Investor.
7. Jared Kushner’s private-equity firm, Affinity Partners, has done its first deal, investing in Mosaic, an Oakland, Calif.-based fintech that offers financing for residential solar installations, Axios reports.
Francisco Partners has completed its acquisition of the healthcare data and analytics assets that were part of IBM’s Watson Health business. The new company will be called Merative.The US unit of Japan’s Mizuho Financial Group has completed its acquisition of Capstone Partners, a middle-market private-equity placement agent based in Dallas.