Good morning! This week, the Fed is expected to announce its first rate cut in over four years. Boeing workers are on strike after rejecting a contract offer. In sports news, the Dolphins, Eagles, Bills, and Chargers are exploring private equity deals. Livvy Dunne has made $9.5 million and is planning her next move post-LSU. WeWork founder Adam Neumann is returning money to investors, and Trump survived another assassination attempt. Plus, Thoma Bravo is prepping for its Sailpoint IPO, and are Citi Bike fees too high for New Yorkers?

Looking for niche private market opportunities led by a Wall Street veteran with skin in the game? Check out today’s sponsor, 10 East.

_{SQUEEZ OF THE DAY}

Tale of Two Hedge Funds

Billionaire Steve Cohen’s Point72 Asset Management is preparing to return some capital to investors for the first time, joining other major hedge funds like Citadel and Millennium in capping their asset growth. The firm’s assets have swelled to a record $35.2 billion, and Point72 is now considering returning profits to clients after the end of the year, following a period of explosive growth.

In the $4 trillion hedge fund industry, bigger doesn’t necessarily mean better. Point72’s decision reflects a growing trend among top hedge funds, where maintaining agility and optimizing performance is prioritized over sheer size. Hedge funds like Point72 are returning profits to cap their growth and avoid the potential pitfalls of managing too much capital, especially in volatile markets.

Since 2020, Point72 has raised nearly $12.8 billion and posted a 10% gain through August this year, adding over $3 billion in assets under management.

This move aligns with what other hedge fund giants are doing. Citadel has returned $25 billion to clients since 2017, while Millennium has given back about $38 billion since 2020, as both firms look to manage their size and stay nimble.

At the same time, smaller hedge funds are struggling. Investors have pulled a net $216 billion from the industry between 2022 and 2023, with another $39 billion withdrawn this year through May. This capital exodus has led to over 1,000 hedge fund closures since 2022, making it tougher for new and smaller firms to stay afloat.

Takeaway: The hedge fund industry has always been competitive, but in 2024, it’s a clear divide between giants and minnows. The multi-strategy funds are swimming in cash and resources, while smaller funds are struggling just to stay afloat. As for Point72, they’ve figured out it’s better to be rich and nimble than just rich. Plus, Cohen might be saving up to buy the Mets a shot at the playoffs.

_{PRESENTED BY 10 EAST}

Where Sophisticated Investors Access Private Markets

10 East, led by Michael Leffell, allows qualified individuals to invest alongside private market veterans in vetted deals across private credit, real estate, niche venture/private equity, and other one-off investments that aren’t typically available through traditional channels.   

Benefits of 10 East membership include:    

• Flexibility – members have full discretion over whether to invest on an offering-by-offering basis.   

• Alignment – principals commit material personal capital to every offering.    

• Institutional resources – a dedicated investment team that sources, monitors, and diligences each offering.   

10 East is where founders, executives, and portfolio managers from industry-leading firms diversify their personal portfolios.  

There are no upfront costs or minimum commitments associated with joining 10 East.

_HEADLINES

Top Reads

• Fed is set to cut rates this week (MF)

• Disney, DirecTV reach deal, restoring programming (YF)

• Boeing workers strike after rejecting contract offer (Axios)

• At least four NFL teams considering private equity plunge  (FOS)

• Livvy Dunne already planning next steps after becoming $9.5M NIL legend (YF)

• WeWork founder Adam Neumann is giving investors their money back  (QZ)

• Thoma Bravo interviewing banks for Sailpoint IPO (YF)

• Biotech trio revives the IPO market (Axios)

• Jeep CEO enacts turnaround plan after significant sales declines (CNBC)

• Private equity loses DB Schenker deal, despite union support (Axios)

• Are electric Citi Bike fees too high for New Yorkers? (Gothamist)

• FBI investigating another apparent assassination attempt against Trump (YF)

• Chinese stocks hit a new low (Axios)

_{CAPITAL PULSE}

Markets Rundown

Stocks climbed for the fifth straight day last Friday, with the S&P 500 up over 4% this week, as August inflation data met expectations and showed the consumer price index easing to 2.5% year-over-year.

Bond yields have fallen, with the 10-year Treasury yield at around 3.65%, reflecting cooling economic growth and anticipation of future Fed rate cuts.

Market leadership has shifted, with gains in sectors like real estate, utilities, and financials, while technology and communication services have lagged.

All eyes are on the Federal Reserve's meeting this week, where a 25bps rate cut is expected, with more cuts likely in 2024.

The Fed appears focused on stabilizing a slowing labor market, suggesting further monetary easing may be on the horizon to support economic stability.

Movers & Shakers

• (+) Restoration Hardware ($RH) +24% after the home furniture retailer company beat earnings.

• (+) Uber ($UBER) +6% because Uber will be offering robotaxi services in Austin and Atlanta next year.

• (–) Adobe ($ADBE) -8% after a weak earnings forecast thanks to delayed AI rollout.

Private Dealmaking

• Sentry Insurance bought auto insurer The General for $1.7 billion

• National Grid sold its electricity system operator for $827 million

• Flutter bought a stake in Brazil’s NSX Group for around $350 million 

• ZeroAvia, a hydrogen-powered airplane engine provider, raised $150 million

• Reverion, a carbon-negative power plants developer, raised $62 million

• Strider Technologies a cyber intelligence company, raised $55 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

F*ck Your Feelings

Do you want to truly be your own master, increase your emotional toughness, control your lizard brain, and get more done during your day? Do you want to turn your dreams into action - all the time?

95% of decisions are based on feelings. Not logic. Not rational thought. Feelings. Can you feel the pull of emotions, hunger, guilt, pain, jealously, depression, and everything else weighing on every decision that you make?

Business owners, entrepreneurs, regular people looking to get in shape, anyone with a goal that isn't terrified of tough love - you need to read F*ck Your Feelings - as soon as possible! In this book you'll learn how to use personal mind control techniques to control the way your brain is wired, constantly accomplish your goals, and feel MORE pleasure during the day.

You cannot control your instincts until you understand how they work - PERIOD.

Learn how to apply the fundamentals of emotional control so that you can uplift yourself ON COMMAND, fight through periods of stress and torment, and give yourself long-term satisfaction and peace.

“An infinitely powerful outline for optimization and self-mastery.”

_{DAILY VISUAL}

America's Rent Bite

_{PRESENTED BY PERCENT}

Unlock Stability and Growth with Private Credit

Market swings, especially during election years, can make traditional investments more volatile. That's why savvy investors are turning to private credit—a proven performer that has outpaced both high-yield bonds and stocks during the last three market downturns.

If you follow the moves of the world’s top asset managers, it’s clear that private credit has become one of the most sought-after asset classes in recent years.

Percent offers accredited investors access to exclusive private credit deals, featuring:

• Proven performance with annual net returns of 14%+ and over $1 billion in deals funded

• Stable recurring cash flow from regular interest payments.

• Diversification across sectors like small business loans, consumer finance, and real estate throughout the U.S., Canada, and Latin America.

• Investment flexibility with individual private credit deals or a blended note across multiple deals

Private credit’s low correlation to public markets makes it an ideal hedge against volatility. With Percent, you can access deals previously reserved for institutional investors, positioning your portfolio for both stability and growth.

Start Your Private Credit journey and get up to  a $500 bonus on your first investment.

_{DAILY ACUMEN}

Small Wins

We often set our sights on big goals, believing that success only comes from achieving something monumental. But research shows that recognizing and celebrating small wins can be just as powerful, if not more so.

Small wins create momentum, build confidence, and keep us moving forward, especially when the larger goal feels distant or overwhelming. Each small achievement releases dopamine in our brains, boosting our mood and reinforcing positive behavior.

By breaking big goals into smaller, manageable steps, we turn daunting tasks into doable actions and create a continuous cycle of motivation.

So, rather than waiting for the big win to feel successful, start acknowledging the small victories along the way. Because success is not a single moment but a series of small, steady steps that add up to greatness.

_{ENLIGHTENMENT}

Short Squeez Picks

• 9 phrases healthy couples don’t say

• Signs you’re actually a very difficult person

• How to explain job hopping in an interview

• 11 etiquette rules for riding the NYC subway

• How to master small talk at work

_{MEME-A-PALOOZA}

Memes of the Day