In today's top stories, leading meme stocks see striking gains and the UK PM has appealed to chipmaker Arm to list its anticipated IPO in London. In 2022, Middle East sovereign wealth funds invested nearly $89bn, while Bridgewater Associates doubled its assets under management in China. Elsewhere, Credit Suisse has offered up-front bonuses to senior staff.
Meme stock frenzy could reflect rising confidence
Meme stocks AMC [AMC] and GameStop [GME] have gained 39% and 13% respectively through 2023 amid a retail investor frenzy. Meme stock overperformance could reflect market confidence, with the CBOE Volatility Index falling 1% to its lowest level since April 2022. Cryptocurrencies are also up: Dogecoin and Bitcoin have gained 14% and 25% respectively, while Shiba Inu rallied 37.5% in the year so far.
Sunak in IPO Arm-twist
UK prime minister Rishi Sunak has appealed to chipmaker Arm’s senior management to list its anticipated IPO in London, despite owner SoftBank’s [9984.T] preference for a US listing. Arm will likely list on the Nasdaq, but British stakeholders are hoping for a rare dual primary listing that would produce Arm with a premium listing on the LSE as well.
Oil windfall leads to $89bn investment from Middle East sovereign funds
Data from Global SWF shows sovereign wealth funds across the Middle East invested nearly $89bn during 2022, as surging oil prices left the region’s funds managing $3.5trn in assets. Saudia Arabia alone pulled in $1bn per day from its oil exports. The windfall is being deployed strategically, according to Bloomberg, with Saudi Arabia’s $620bn Public Investment Fund seeking to diversify the country’s economy away from over-reliance on oil.
Bridgewater doubles Chinese assets under management
As China’s hedge fund industry contracted 13% in 2022, Bridgewater Associates doubled its assets under management and realised 7.4% gains. Diversification into bonds and commodities countered losses in equities. China’s reopening could bring on the release of pent-up demand and fuel inflation, putting pressure on the Fed, says Tavis McCourt, equity strategist at Raymond James.
Credit Suisse offers up-front bonuses to senior staff
While competitors such as Goldman Sachs [GS] make cuts, Credit Suisse [CS] is offering financial incentives to senior staff in order to improve retention. The investment bank is offering an up-front bonus, which will need to be repaid pro rata should recipients leave within three years. Following “horrifying” losses, however, Credit Suisse’s bonus pool “will be lower than in previous years”.