Good Morning and Happy Friday! OpenAI is close to launching an AI agent tool to automate user tasks. Burberry CEO unveiled a revival plan. Disney surged on streaming growth and strong guidance. The Onion bought the assets of Alex Jones’ Infowars.

Trump’s transition team wants to axe Biden’s electric vehicle tax credit, sending Tesla and other EV stocks plummeting. Trump also tapped RFK Jr. for health secretary, sending vaccine stocks tumbling. Wholesale prices climbed 0.2% in October, but some economists are bracing for inflation to come back in the next four years.

Plus, the investment firm that stole $658 million in a Ponzi scheme targeting Fox News viewers, and are standing desks actually bad for you?

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_{SQUEEZ OF THE DAY}

Ivy League Investors Struggling

The stock market has been roaring, and it seems like everyone is a winner - unless you’re an endowment at an Ivy League university. 

Ivy League endowments like Yale and Princeton have not only underperformed the stock market but they’re even getting crushed by non-target universities.

Over the past 12 months ending in June, six out of the eight Ivy League schools reported returns below the 10.3% average for higher education.

Yale squeaked out a 5.7% average return, and Princeton couldn’t even beat the current Treasury yield of over 4%, eking out a 3.9% average return. And it all comes at a time when the S&P 500 has roared 57% over the past two years.

Ivy League endowments have always been the envy of institutional investors, but they are stumbling after heavy bets on private markets. While Ivy League endowments allocated heavily to private equity and venture capital, dealmaking has dried up and interest rates are staying high.

Ivy League endowments have always been guinea pigs or even pioneers for alternative investing, and that strategy has paid off for decades. 

Yale allocates 45% of its endowment to private equity and venture capital and was able to achieve annualized returns of 10.3% over 20 years. But with those private equity exits drying up, some endowments like Princeton have even issued bonds to cover funding needs.

Takeaway: It’s definitely a bad look that Princeton, the alma mater of some of the greatest finance minds and Wall Street titans, can’t even beat the risk-free Treasuries return over the past two years - let alone the roaring S&P 500 index. The private equity industry will definitely recover, but one thing is for sure - sometimes it doesn’t take a genius (and 2% fees) to beat the market. 

_{PRESENTED BY CORPORATE FINANCE INSTITUTE}

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_HEADLINES

Top Reads

• OpenAI nears launch of AI agent tool to automate tasks for users (BB)

• Burberry CEO unveils revival plan (YF)

• Disney stock surges on streaming growth, guidance (CNBC)

• The Onion acquires Alex Jones' Infowars (Axios)

• Trump’s transition team aims to kill Biden EV tax credit (CNBC)

• Vaccine maker stocks fall as Trump taps RFK Jr. for health secretary (Axios)

• Wholesale prices rose 0.2% in October, in line with expectations (CNBC)

• Why the market should prepare for inflation to return in Trump second term (CNBC)

• Why Goldman stands out as a Trump era winner on Wall Street (WSJ)

• Greenlight Capital’s Einhorn argues that markets are broken (CNBC)

• NYC shifts broker fees to landlords (NYP)

• Manhattan apartment rents rise to highest level since July (BB)

• The DOGE jokes are easy, but Musk’s new side hustle is Tesla’s biggest advantage (YF)

• Investment firm stole $658 million in Ponzi scheme targeting Fox News viewers (MW)

• 2 firm inflation prints just made the Fed's 2025 rate cut path a lot 'murkier' (YF)

• Goldman sees 20% upside as Philip Morris moves to products like Zyn (CNBC)

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Markets Rundown

Stocks Pause Rally with Modest Pullback: U.S. equity markets cooled off Thursday after their post-election gains, with small- and mid-cap stocks trailing large caps. Most sectors closed lower, though energy and technology stocks managed to notch gains.

Bond yields climbed as Fed Chair Jerome Powell emphasized a patient approach to cutting interest rates. Globally, Asian markets were mostly down, while Europe saw a mild uptick. The U.S. dollar gained strength, while WTI oil prices rebounded after recent declines.

Producer Inflation Creeps Higher: October’s producer price index (PPI) edged up to 2.4% annualized, slightly above forecasts, while core PPI (excluding food and energy) reached 3.1%.

While inflation is trending lower, the decline may be slower than expected. This steady, if gradual, easing supports the Fed’s ongoing interest-rate cuts, though we anticipate a slower pace as the Fed aims for a soft landing.

Jobless Claims Dip, Reflecting Labor Market Resilience: Weekly jobless claims fell to 217,000, undercutting forecasts and signaling a labor market in gradual normalization.

Employers appear to be pulling back on hiring without significant layoffs, maintaining a steady unemployment rate of 4.1%. This supports household incomes and likely positions consumer spending to remain healthy heading into the holiday season.

Movers & Shakers

• (+) Tapestry ($TPR) +13% after the company called off its merger with Capri.

• (+) Disney ($DIS) +6% because of streaming growth; better than expected earnings.

• (–) Tesla ($TSLA) -6% after rumors the EV credit will be repealed.

Private Dealmaking

• Metsera, an obesity medicines developer, raised $215 million

• Alentis Therapeutics, a cancer treatment developer, raised $181 million

• Firefly Aerospace, a rocket maker, raised $175 million 

• Chaos Industries, a defense tech startup, raised $145 million 

• Recogni, a generative AI inference systems developer, raised $102 million

• Trace Neuroscience, a genomic medicines developer, raised $101 million

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

_{NEIGHBORHOOD WATCH}

Real Estate Digest

Latest News

• What’s Next For Real Estate Following the Election

• NAR Projects 9% Increase in Home Sales in 2025

• Kevin O’Leary Says First Time Homebuyers Should Follow this One Rule

• Manhattan Apartment Rents Rise to Highest Level Since July

New Listings

• 510 Park Avenue Apt: 6A New York, NY: 5 Bed / 5.5 Bath - $5,995,000

• 1418 S Miami Ave Apt: 6204 Miami, FL: 4 Bed / 4.5 Bath - $6,433,900 

• 822 Bryant Ave Roslyn, NY: 6 Bed / 5 Bath - $5,895,000

• Via dei Colli, 20, Lombardia, Italy: 4 Bed / 4 Bath- $1,712,000

• 1432 Harridge Dr Beverly Hills, CA: 4 Bed / 4 Bath - $4,999,999

Fill out this form if you're looking to buy, sell, rent or invest.

_{BOOK OF THE DAY}

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_{DAILY VISUAL}

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Archery

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Short Squeez Picks

• 7 tiny habits that make people dislike you almost instantly

• The most walkable U.S. cities

• Are standing desks actually bad for you?

• Stop staying home to save money

• Silent firing is the new quiet quitting

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Memes of the Day