DOCSLIB.ORG

February 8, 2021 – Market Update Table of Contents

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
February 8, 2021 – Market Update Table of Contents MARKET UPDATE subscribe at sandyleeds.com February 8, 2021 – Market Update Table of Contents I. Last Week........................................................................................................2 A. Markets (Barron’s) (Barron’s) .....................................................................................................2 B. Why Shares Rose Last Week (WSJ)..............................................................................................3 C. Employment Report (Barron’s) (Bloomberg) (WSJ) ......................................................................3 II. Different Views on the Stock Market ..............................................................4 A. Bill Gross’ Investment Outlook: “Little Bit Softer Now” (PR) .......................................................4 B. Fed Can’t Ignore its Role (Bloomberg) .........................................................................................4 C. Bonds vs. Equities (Bloomberg) ..................................................................................................5 D. Merger Arbitrage Bets (WSJ) ......................................................................................................5 E. Bubble (WSJ) ..............................................................................................................................6 III. Free Trading and Payment for Order Flow (PFOF) ..........................................7 A. Free Trading Costs (WSJ) ............................................................................................................7 B. Robinhood Hidden Costs (WSJ) ...................................................................................................7 C. Payment for Order Flow (Matt Levine -- Bloomberg) (WSJ) .........................................................8 D. Citadel Profits (WSJ) ..................................................................................................................9 E. Time to Stop Trading Conflicts that Cost Investors Billions, by retired Senator Levin (FT) ..............9 IV. Special Purpose Acquisition Companies (SPACs) .......................................... 10 A. SPAC (CNBC) ............................................................................................................................ 10 B. SPACs Performance After the Acquisition (Barron’s) ................................................................. 10 C. GME Traders Moving into SPACs (WSJ) ..................................................................................... 10 V. General Interest ........................................................................................... 11 sandyleeds.com 1 I. Last Week A. Markets (Barron’s) (Barron’s) 1. Last week: DJIA +3.9%; S&P +4.6%; Nasdaq +6%; Russell 2000 +7.7% a. Hedge funds had “degrossed” last week and had to reload i. They had closed short and long positions last week b. While jobs report was disappointing (49K jobs and December report revised down to 227K from 140K), other news was more positive i. ISM services survey new order and hiring components point to growth ii. More stimulus payments iii. Improving Covid news 1. Weekly number of new cases down 30% from two weeks ago 2. New vaccines coming a. JNJ has filed for emergency-use authorization b. Novavax headed in right direction 3. Clorox dropped 8% (this was a pandemic play) iv. Oil and interest rates may be signaling growth 1. Energy ETF (XLE) +8.2% as oil climbed 8.9% ($56.85 / barrel) a. Oil is highest it’s been since January 2. Financial ETF (XLF) improved as 10-year yield hit highest level since March v. VIX receded to the low 20s 2. Yield curve is most upward sloped in years a. 2-year yield: .09%; 10-year: 1.19%; 30-year: 1.97% i. Since Aug: 30-yr +73 bps and 10-yr +63 bps ii. 2-year stays low b/c Fed is not expected to raise rates b. Higher yield seems to be higher inflation expectation i. Seem to be expecting higher inflation 1. Got a boost from Biden’s $1.9T plan 2. 5-yr breakeven inflation: 2.28% (+80bps since Sep); 10-yr 2.21% ii. Stimulus will also bring higher growth, but TIPs yield falling c. Implications: i. As 2/10 spread approaches 1.3%, may be sign of Fed raising rates ii. Maybe the steady rise in yields could help preclude a “taper tantrum” iii. Bank stocks may continue to post strong performance iv. Treasury yields will eventually climb high enough to draw investors back into the market 3. A little bit of irony… a. Koss shares had been at $3 at the end of last year and hit $127 last week i. The Koss family and executives sold $45MM of stock 1. Greater than the market cap at the end of 2020 2. Mostly sold at $20 - $60 ii. Who would have ever thought that Robinhood would be an entity that moved money from the poor to the wealthy! sandyleeds.com 2 B. Why Shares Rose Last Week (WSJ) 1. Possible new stimulus a. Particularly with a weak jobs report 2. New vaccines (such as JNJ) 3. Decline in volatility 4. Earnings growth 5. Low interest rates C. Employment Report (Barron’s) (Bloomberg) (WSJ) 1. Nonfarm payrolls increased by just 49K a. December was revised down from 140K to 227K b. Remember that the economy lost 9.3MM jobs in 2020 – still need them back 2. Jobless rate (U-3) fell from 6.7% to 6.3% (6.9% if no misclassification error) a. More people employed b. More people leaving workforce (lower participation rate) 3. U-6 rate fell to 11.7% 4. The negative news: a. Private payrolls increase by only 6K last month i. Job cuts in retail trade, transportation and warehousing, and leisure and hospitality b. Almost 40% of the unemployed have been out of 27 weeks or more (4MM+) i. Highest percentage since 2012 c. Large differences in unemployment rates: i. Whites (5.7%); Asian (6.6%); Hispanics (8.6%); Blacks (9.2%) 5. Some bright spots: a. Household survey implies that employment rose 381K i. And this was led by full-time jobs (300K+) b. Americans working longer hours i. Average weekly hours rose to 35 1. Highest in data back to 2006 ii. Average weekly hours for non-supervisory workers rose to 34.4 hours 1. Longest workweek since 2000 c. Employment at temporary-help services jumped most in three months (+3.1%) i. May foreshadow a pickup in hiring ii. Payrolls at temporary-help services climbed almost 81K d. As of last month, financial, tech, and management consulting have returned to pre-pandemic levels i. Job postings for tech and finance are up 20% and 11% e. Average hourly earnings rose .2% MOM and 5.4% YOY sandyleeds.com 3 II. Different Views on the Stock Market A. Bill Gross’ Investment Outlook: “Little Bit Softer Now” (PR) 1. The “bubblicious” stock market a. IPOs like DoorDash soared 80% on its first day b. Airbnb jumped 110% -- giving it a $100B market cap 2. Market is being driven by fiscal stimulus and monetary policy a. Negative real rate 3. Two points of caution a. What if the reassembled economy, absent a large amount of office space, retail stores, and new Boeing airplanes doesn’t create a capitalist creative destruction replacement in short order i. How many fiscal packages can the stock market stand before it realizes that GDP is now opioid-like (dependent on more) 1. If we have to constantly run trillion-dollar deficits, the market should trade at a lower P/E a. We’re more like the Nordic and European markets b. Stock prices and p/e multiples are affected by interest rates i. Low bond yields result in low earnings yields (high P/Es) ii. Low yields mean that distant cash flows retain their value 1. The 200 bp decline in real 10-year yields since Jan. 2019 have been instrumental in the 50% market rise since then 4. Real yields need to stay low for all of this to continue B. Fed Can’t Ignore its Role (Bloomberg) 1. It’s hard to miss the tell-tale signs of a bubble: a. IPOs are popping more on the first day of trading than they have since the dot- com days i. Airbnb, DoorDash, Snowflake b. Recent speculation on GameStop and other heavily shorted stocks c. Hertz and other low-priced stocks that speculators chased d. Bitcoin 2. In some ways, it’s like the tech bubble with everyone getting rich a. SPACs b. Whatever Chamath Palihapitiya is touting c. WallStreetBets d. Digital currencies 3. The current mania is different for one reason: monetary policy a. During the tech bubble, Fed had raised rates to 6.5% heading into 2000 4. Negative real yields are probably the chief source of all this speculation a. If real yields are positive, why take risk in stocks b. Now JPM says that households’ equity allocation has risen to record highs, surpassing the beginning of 2000 sandyleeds.com 4 C. Bonds vs. Equities (Bloomberg) 1. For the past ten months, investors have justified the huge melt-up in stock prices by pointing to low bond yields 2. This case is no longer compelling: a. Stock yields are lower (b/c prices have increased) i. The S&P is up 8% since September 1. S&P earnings yield is at a record low 3.16% 2. S&P dividend yield is 1.5% ii. Nasdaq 100 is up 9% since September 1. Earnings yield of 2.5% 2. Dividend yield of .72% b. 10-year UST yields have almost doubled to 1.14% i. 30-year is close to 2% 1. Yield on long bonds now exceeds the S&P 500’s dividend yield by the most since before the crisis 2. Bloomberg Barclays index of AA-rated corporate bonds with an average maturity of 13 years yields 1.6% (highest since June) a. This also exceeds the S&P’s dividend yield c. In some ways, this is a return to normalcy i. It’s been rare for equities to yield so much more than USTs and high- quality corporate bonds 1. In late
Load more

Recommended publications
  • Filed by Social Capital Hedosophia Holdings Corp. II Pursuant To
    Filed by Social Capital Hedosophia Holdings Corp. II Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Opendoor Commission File No. 001-39253 Chamath Palihapitiya, CEO and Founder, Social Capital Hedosophia II CNBC Squawk Box Interview Transcript September 15, 2020 ANDREW ROSS SORKIN: Good morning and welcome back to Squawk Box, I’m Andrew Ross Sorkin along with Joe Kernen, Becky is off today. This hour, we're going to strain the broadband and try something we haven’t done in months, we’re going to bring in a guest host for the entire hour. There’s no better person for that than Chamanth Palihapitiya, the Founder and CEO of Social Capital. He’s also the chairman of Virgin Galactic and Co-owner of the NBA’s Golden State Warriors, and recently he’s been very active in the realm of SPACs, special purpose acquisition companies, and this morning he has some breaking news on this very topic. We’re thrilled to have you here Chamanth, and no less you’re breaking news on the air. I’ll let you take it away, what’s the news? CHAMATH PALIHAPITIYA: Andrew, well, thanks for letting me do this with you guys. The news is that IPOB is merging with Opendoor, and Opendoor will be going public. This is the largest online consumer real estate business in the United States. It's doing something really incredible and what I wanted to do was take an opportunity to give the viewers a sort of behind-the-scenes look at how we decided to do this investment.
    [Show full text]
  • Cecilia Diaz Critical/Cultural Methods Dr. Bob Bednar 4/8//21
    Cecilia Diaz Critical/Cultural Methods Dr. Bob Bednar 4/8//21 Research Project Draft Protests in the name of social reform have recently undergone drastic transformations in how they are founded and manifested. The ascension of social media use in the early 2000s gave rise to streamlined instant communication between people that otherwise may have never communicated organically. History has proven that we gather together in times of hardship and join forces when those hardships necessitate change and reform. The internet eliminates the practical issue of distance and facilitates the possibility of an infinite number of formed communities. In the case of protest, it facilitates the ability to organize and gather to demand social and political change. Sebastián Valenzuela suggests that one explanation for use of social networks and political protest may be online expression as a foundation for action. It is stated, “In addition to cognitive preparation, the expression of opinions can be facilitators of political protest” (Valenzuela, 2014). Research has shown that when individuals talk about political subjects publicly, they are more likely to mobilize and engage in political activities. The expression “allows people to face their ideas, make arguments, and reflect on the information obtained” (Schmitt-Beck, 2008). Platforms like Twitter and Facebook have acted as multiplexes for the expression of political views and serve as the foundation for many modern protests such as the Black Lives Matter movement, #MeToo, Arab Spring, and the Sunflower Student Movement. The protest this study will focus on is unique in that it was not founded as a politically driven protest but became one, or perhaps more accurately, was received as one as it gained popularity in mainstream media publics.
    [Show full text]
  • The-Growth-Handbook.Pdf
    Authoritative, actionable strategies on how to grow your business. Intercom builds a suite of messaging-first products that all modern internet businesses can use to accelerate growth across the customer lifecycle, from acquisition to engagement and support. www.intercom.com We also regularly share our thoughts on growth, marketing, sales, startups and the business of software. blog.intercom.com Executive Editors: Adam Risman and Geoffrey Keating Copy Editor: Karen Ostergren Book Design: Judson Collier and Kelly Carpenter Art Direction: Justin Pervorse © 2018 Intercom Inc. ISBN: 978-0-9861392-9-1 We’ll spare you the legal mumbo jumbo. But please don’t share this book or rip off any content or imagery in it without giving us appropriate credit and a link. Got questions? Drop us a note at [email protected]. 06 21 31 48 57 69 Chamath Palihapitiya, Founder and CEO, Social Capital and Facebook’s first VP of Growth When asked, I often tell people that the key to seem smart. Great things are simple. We had a very understanding growth is two things: simple framework for growth – acquisition, activation, engagement, virality. Having this framework allowed 1. A fundamental understanding of your product and, us to prioritize our work, design experiments, build specifically, what the key reasons people use it are. products and so on. It also allowed everyone to It’s easy to be confused about what true value looks like understand it and see how decisions were made in a and, as a byproduct, conflate causation and correlation: logical, transparent way. motivations and root causes versus byproducts and outcomes.
    [Show full text]
  • UNITED STATES SECURITIES and EXCHANGE COMMISSION Washington, D.C
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a party other than the Registrant o Check the appropriate box: o Preliminary Proxy Statement o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) x Definitive Proxy Statement o Definitive Additional Materials o Soliciting Material Pursuant to § 240.14a-12 Virgin Galactic Holdings, Inc. (Name of Registrant as Specified in its Charter) (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): x No fee required. o Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: (2) Aggregate number of securities to which transaction applies: (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: (5) Total fee paid: o Fee paid previously with preliminary materials. o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
    [Show full text]
  • Filed by Social Capital Hedosophia Holdings Corp. III Pursuant to Rule
    Filed by Social Capital Hedosophia Holdings Corp. III Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: Clover Health Investments, Corp. Commission File No. 001-39252 Clover Health - SCH Merger Announcement: Full CNBC Squawk Box Transcript Squawk Box – Interview with Chamath Palihapitiya and Vivek Garipalli CNBC October 6, 2020 Clip 1 Clip 2 ANDREW ROSS SORKIN: Welcome back to Squawk. This morning, Chamath Palihapitiya unveiling his next SPAC target, healthcare startup Clover Health and Chamath is back with us to explain why. Chamath, make the argument. CHAMATH PALIHAPITIYA, CEO, SOCIAL CAPITAL: Well, Andrew, let's just take a step back. You know, when the pandemic started, I, like a lot of Americans, just felt enormous anxiety, and what I tried to do was do the best I could to learn as much about the healthcare system and the pandemic specifically. And it was very hard for me. You know, I’m trying to navigate an understand of testing, understanding medicines, understanding a course of care if I were to get the disease, what I would do, and I was left with just a lot of confusion. And so, I took a step back, and I wanted to actually understand the state of healthcare more broadly. And what I found was really disturbing. Since 1970, what we have done as Americans is we have now, on a per capita basis, increased healthcare spending by 31 times, meaning for every dollar we spent in 1970, we now spend $31.
    [Show full text]
  • 2011 Annual Report Index
    2011 Annual Report index “Th e basics of good banking are simple and vary 3 Letter to Shareholders little from year to year–provide outstanding service 6 Financial Highlights to attract and retain clients, generate clean assets, keep expenses controlled and maintain asset and 8 Client Testimonials liability matching.” 54 Products and Services JAMES H. HERBERT, II 58 2011 Financial Summary Chairman and Chief Executive Offi cer (Founding) 64 Investing in Our Communities 66 Board of Directors 68 Locations Founded in 1985, First Republic Bank and its subsidiaries provide private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional relationship-based service, with a commitment to responsiveness and action. san francisco • palo alto • los angeles • santa barbara • newport beach san diego • portland • boston • greenwich • new york 3. Dear Shareholders Overall, 2011 was a very good year for First Republic. We fi rmly re-established ourselves as a publicly traded, NYSE-listed company; earned a record profi t; substantially expanded our client base; recorded signifi cant growth in both private banking and wealth management; increased our book value per share by over 17%; remained very well capitalized; and experienced minimal credit issues. In banking, particularly in these volatile times, the maintenance of strong capital and the highest quality assets is critical to the safety of depositors’ funds–our foremost concern at all times. Since our formation in 1985, First Republic has always had two key goals: 1) A strong, safe balance sheet for the protection–through all cycles–of our depositors’ funds and the preservation of shareholder value.
    [Show full text]
  • Social Capital Hedosophia Holdings Corp. III (Exact Name of Registrant As Specified in Its Charter)
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): December 14, 2020 (December 9, 2020) Social Capital Hedosophia Holdings Corp. III (Exact name of registrant as specified in its charter) Cayman Islands 001-39252 98-1515192 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 317 University Ave, Suite 200 Palo Alto, California 94301 (Address of principal executive offices) (Zip Code) (650) 521-9007 (Registrant’s telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☒ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Trading Name of each exchange Title of each class Symbol(s) on which registered Units, each consisting of one Class A ordinary IPOC.U New York Stock Exchange share and one-third of one redeemable warrant Class A ordinary shares, par value $0.0001 per IPOC New York Stock Exchange share Redeemable warrants, each whole warrant IPOC.WS New York Stock Exchange exercisable for one Class A ordinary share at an exercise price of $11.50 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
    [Show full text]
  • January 2021 Short Squeeze Trading Litigation ______
    Case 1:21-md-02989-CMA Document 358 Entered on FLSD Docket 07/27/2021 Page 1 of 136 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 21-2989-MDL-ALTONAGA/Torres IN RE: JANUARY 2021 SHORT SQUEEZE TRADING LITIGATION ____________________________________/ This Document Relates to: ALL ANTITRUST ACTIONS CONSOLIDATED CLASS ACTION COMPLAINT [REDACTED VERSION] i Case 1:21-md-02989-CMA Document 358 Entered on FLSD Docket 07/27/2021 Page 2 of 136 TABLE OF CONTENTS Page(s) INTRODUCTION ........................................................................................................................... JURISDICTION AND VENUE ...................................................................................................... PARTIES ......................................................................................................................................... A. Plaintiff Angel Guzman ...................................................................................................... B. Plaintiff Burke Minahan ...................................................................................................... C. Plaintiff Christopher Miller ................................................................................................. D. Plaintiff Terell Sterling ........................................................................................................ E. Introducing Brokerage Defendants ..................................................................................... F. Self-Clearing
    [Show full text]
  • Social Capital Hedosophia Holdings Corp.* (Exact Name of Registrant As Specified in Its Charter)
    Table of Contents As filed with the Securities and Exchange Commission on October 8, 2019 Registration No. 333-233098 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 4 TO FORM S-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Social Capital Hedosophia Holdings Corp.* (Exact Name of Registrant as Specified in Its Charter) Cayman Islands* 4789 98-1366046 (State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer incorporation or organization) Classification Code Number) Identification Number) 120 Hawthorne Avenue Palo Alto, California 94301 (650) 521-9007 (Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices) Chamath Palihapitiya Chief Executive Officer Social Capital Hedosophia Holdings Corp. 120 Hawthorne Avenue Palo Alto, California 94301 (650) 521-9007 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies to: Howard L. Ellin Matthew Gardner Justin G. Hamill Christopher M. Barlow Michael Johns Shayne Kennedy Skadden, Arps, Slate, Meagher & Michael Lockwood Josh Dubofsky Flom LLP Maples and Calder Charles K. Ruck Four Times Square PO Box 309, Ugland House, Latham & Watkins LLP New York, NY 10036 Grand Cayman, KY1-1104, 885 Third Avenue (212) 735-3000 Cayman Islands New York, NY 10022 (345) 949-8066 (212) 906-1200 Approximate date of commencement of proposed sale of the securities to the public: As soon as practicable after this registration statement is declared
    [Show full text]
  • November 12, 2020 the Honorable Joseph J. Simons Federal Trade
    November 12, 2020 The Honorable Joseph J. Simons Federal Trade Commission 600 Pennsylvania Avenue, NW Washington, DC 20580 Dear Chairman Simons: Competition is the backbone of American industry and the engine that drives our entrepreneurial spirit. Monopolies, however, cause stagnation and smother innovation. As the Commission presses forward with its ongoing antitrust investigation of Facebook, I urge that you consider interviewing former employees to target the full scope of the company’s anticompetitive conduct. I understand that Mr. Zuckerberg sat for a deposition with the Commission this summer. While that is promising, I encourage you to also speak to other Facebook executives and engineers who can reveal the company’s real agenda. Many of them fear letting Facebook’s dominance go unchecked can hold dark consequences for competitors and consumers alike. • Company co-founder Chris Hughes believes it is time to break up Facebook, which he calls a “powerful monopoly, eclipsing all of its rivals and erasing competition.” On Mr. Zuckerberg’s influence, he said, “Mark alone can decide how to configure Facebook’s algorithms to determine what people see in their News Feeds, what privacy settings they can use and even which messages get delivered.”1 • Former Chief Security Officer Alex Stamos said Mr. Zuckerberg should step down because he holds “too much power.”2 He compared Facebook to “a banana republic.”3 • Yaël Eisenstat, the former Head of Global Elections Integrity Operations, said, “Facebook profits partly by amplifying lies and
    [Show full text]
  • Social Capital Hedosophia Holdings Corp. II
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): September 15, 2020 Social Capital Hedosophia Holdings Corp. II (Exact name of registrant as specified in its charter) Cayman Islands 001-39253 98-1515020 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 317 University Ave, Suite 200 94301 Palo Alto, California (Zip Code) (Address of principal executive offices) (650) 521-9007 (Registrant's telephone number, including area code) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☒ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Units, each consisting of one Class A ordinary share, IPOB.U New York Stock Exchange $0.0001 par value, and one-third of one Warrant to purchase one Class A ordinary share Class A ordinary shares, $0.0001 par value per share IPOB New York Stock Exchange Warrants to purchase Class A ordinary shares IPOB.WS New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
    [Show full text]
  • Greenlight Capital Funds (The “Partnerships”) Returned -0.1%1 in the First Quarter of 2021 Compared to 6.2% for the S&P 500 Index
    April 15, 2021 Dear Partner: The Greenlight Capital funds (the “Partnerships”) returned -0.1%1 in the first quarter of 2021 compared to 6.2% for the S&P 500 index. For a quarter in which we made only a handful of portfolio changes and essentially broke even, a lot happened. In general, the investment environment – especially from mid-February through the end of the quarter – was favorable as value outperformed growth, and interest rates and inflation expectations rose. Has the tide turned from Growth to Value? After a very tough decade, we have only just begun a recovery as shown in this 45-year chart from Goldman Sachs research: Growth has outperformed since the GFC MSCI Indices. Relative price performance in local currency. Monthly Frequency until 2000. Daily Frequency from 2000 onwards. Source: Datastream, Goldman Sachs Global Investment Research Part of the shift from growth to value may be coming from higher inflation and inflation expectations. As measured by the inflation swap market, 10-year inflation expectations fell from 2.9% in September 2012 to 0.8% in March 2020. The only significant intervening bounce came 1 Source: Greenlight Capital. Please refer to information contained in the disclosures at the end of the letter. 2 Grand Central Tower • 140 East 45th Street, 24th Floor • New York, NY 10017 Phone: 212-973-1900 • Fax 212-973-9219 • www.greenlightcapital.com Page 2 in 2016, when expectations jumped from 1.5% to 2.3%; notably, that was the only year in the last decade in which value outperformed growth. After bottoming in March 2020, inflation expectations have recovered to 2.5%.
    [Show full text]