—— US Household Net Worth Jumps $2.76tn; Point72 to Return Billions to Investors; OpenAI Releases New Model That Could Reason; American Airline Flight Attendants Win 20% Salary Increase; Moderna to Cut R&D Budget by 20%; Millennium to Raise $10bn Permanant Capital
1. US Household Net Worth Jumps $2.76tn
During the second quarter, U.S. household wealth reached a new record high, propelled by continuous increases in real estate values and stock holdings among Americans.
A Federal Reserve report released on Thursday showed that household net worth rose by $2.76 trillion, or 1.7% from the previous quarter, totaling $163.8 trillion. The value of real estate owned by households surged by about $1.75 trillion—the largest increase in a year—while equity holdings grew by approximately $662 billion.
The S&P 500 climbed to a record level between April and June, driven by optimism over corporate earnings and the possibility of Federal Reserve interest-rate cuts. Meanwhile, home prices remained elevated due to limited inventory in the resale market.
However, persistent inflation has dampened Americans’ views of their personal finances. Various measures indicate that wage growth has slowed and savings have decreased, leaving many—especially those without substantial investments—feeling financially stretched.
The Fed’s report also indicated that consumers and businesses increased their borrowing at a slower rate during the second quarter
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2. Point72 to Return Billions to Investors
Billionaire Steve Cohen’s Point72 Asset Management is preparing to return some capital to investors for the first time, joining other multistrategy hedge funds seeking to limit their assets after a period of significant growth.
The firm is considering distributing profits to clients after the end of the year, according to people familiar with the matter. The amount could reach into the billions of dollars, but the exact figure remains uncertain as plans are still being finalized and could change. These individuals requested anonymity because the details are private.
Hedge fund managers often restrict new investments or return capital to avoid becoming too large, as excessive size can be a hindrance when navigating volatile markets and certain asset classes.
Point72 has raised nearly $12.8 billion since 2020 and currently manages a record $35.2 billion. The hedge fund has gained about 10% through August this year, amounting to more than $3 billion, as previously reported by Bloomberg News. A representative for Point72 declined to comment.
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3. OpenAI Releases New Model That Could Reason
Bank of America Corp. has appointed Tim Carpenter from JPMorgan Chase & Co. to co-lead its software investment banking practice. Carpenter, who is based in Boston, will join Bank of America as a managing director in December after a leave period. He will work alongside Edward Liu, the bank’s other software co-head.
Carpenter, who was previously co-head of enterprise technology and cloud investment banking at JPMorgan, joined the bank in 2015 from Deutsche Bank AG. Both Bank of America and JPMorgan, as well as Carpenter, have declined to comment on the move.
Earlier this summer, Bank of America also hired Kempton Dunn to focus on software and appointed Kevin Brunner as head of global technology, media, and telecommunications investment banking.
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4. American Airline Flight Attendants Win 20% Salary Increase
Flight attendants at American Airlines Group Inc. have approved a contract that will immediately boost wages by up to 20% and add $4.2 billion in pay and benefits over a five-year period.
The Association of Professional Flight Attendants announced on Thursday that 87% of voting members accepted the agreement. The deal was reached in July after U.S. labor mediators encouraged both the airline and the union to finalize lengthy negotiations, preventing a potential strike during the busy summer travel season.
This approval adds to a series of new contracts featuring double-digit pay increases and enhanced benefits across the U.S. airline industry over the past year. These costly agreements—the first negotiated since the pandemic—are increasing financial pressures on airlines, which are also grappling with delays in new aircraft deliveries, inflation, and parts shortages. Labor and fuel continue to be the largest expenses for carriers.
Union president Julie Hedrick described the contract as a significant milestone for the flight attendants.
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5. Moderna to Cut R&D Budget by 20%
Amazon’s Audible is starting a new initiative to enhance its audiobook offerings by using artificial intelligence to replicate the voices of select audiobook narrators. The program, which begins this week, will involve US-based narrators training AI to produce audiobook recordings using their voice clones. This move aims to increase the volume of audiobooks available on Audible in a cost-effective and efficient manner while integrating professional narrators into the automation process.
Previously, Amazon offered a “virtual voice” option for self-published authors using generic synthetic voices. Since May, this technology has been used for over 40,000 books on Audible.
The new initiative will expand beyond generic voices by including professional narrators, allowing them to contribute to the evolving audiobook market through AI.
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6. Ontario Pension Fund to Sell $1.5bn PE Stakes
Ontario Teachers’ Pension Plan is exploring the sale of a $1.5 billion portfolio of private equity fund stakes on the secondary market to free up capital for other investments, according to people familiar with the matter.
The pension fund is working with advisors at Jefferies Financial Group Inc. to attract buyer interest in the portfolio, the sources said, requesting anonymity due to the private nature of the information. One person noted that discussions are in the early stages.
Spokespersons for both Jefferies and Ontario Teachers’ declined to comment.
With assets under management totaling C$255.8 billion ($188.3 billion), the pension fund held C$58.5 billion in private equity assets as of June 30. This asset class returned 3.6% last year, underperforming the benchmark of 16.3%.
Transactions in the private equity secondary market have risen as limited partners seek liquidity amid a slow dealmaking environment. According to a report by PJT Partners Inc., portfolio sales by limited partners increased to $60 billion last year from $53 billion in 2022.
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7. Millennium to Raise $10bn Permanant Capital
Izzy Englander’s Millennium Management is planning to raise between $7 billion and $10 billion in new capital using a structure aimed at providing the hedge fund firm with a more permanent source of funding.
Like many of its peers, Millennium has been working to secure client funds for longer durations. The firm, which now manages approximately $69 billion, has recently adopted a strategy similar to that of private equity firms by raising callable capital—instead of accepting all the funds upfront as most hedge funds do.
Under this new approach, clients will make financial commitments that Millennium can draw upon over time. As the firm utilizes these funds, new commitments will replenish the pool. When capital is called, all investors in the queue will participate, but the firm will prioritize taking more money from those who pledged their cash earliest.
This method of fundraising will provide Millennium with liquidity as needed, eliminating the need to hold a cash reserve that could potentially reduce returns.
Millennium’s plan also reduces some of the uncertainty associated with raising funds. Currently, if the firm doesn’t use all of its callable capital within three years, the client commitments expire. Under the new arrangement, these commitments will no longer expire, although investors will have the option to gradually reduce them after two years.
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。