Latest news with #FidelityInvestments'
Mint
3 days ago
- Business
- Mint
Billionaire Johnson Family's VC Fund to Exit China Tech Holdings
A venture capital fund backed by Fidelity Investments' billionaire Johnson family plans to unload its Chinese technology holdings amid heightened tensions between Beijing and Washington, according to people familiar with the matter. Eight Roads, Abigail Johnson's family firm that was an early investor in China's internet sector, began exploring the sale of all its investments in about 40 Chinese tech companies earlier this year, the people said, asking not to be identified discussing a private matter. The companies are being sold at a discount ranging from 60% to 80% of their peak valuation, which was about $1 billion combined, the people said. The negotiations are ongoing and could be subject to change, the people added. The stakes include that of self-driving car company Pony AI Inc., which Eight Roads still holds due to a lockup period, the people said. Growing geopolitical tensions were a key driver behind the move, after the US imposed restrictions on investments in China's advanced technology sector in January, the people said. Since then, trade friction has escalated after US President Donald Trump hiked duties on Chinese goods, prompting retaliation from Beijing. Eight Roads made a decision last year to not actively pursue new investments in China tech companies in response to the changing regulatory environment, a spokesperson said in a statement to Bloomberg News. A smaller team will continue to manage the firm's existing portfolio, and focus on its health-care business in China, the company added, declining to comment further. The firm has invested more than $1.1 billion in about 130 companies in China, according to its website. Globally, the fund that was started in 1969 by the Johnson family has backed some 500 companies in markets including India and Japan. Eight Roads has more than $11 billion in assets under management. The sell-down follows a broader pullback by the firm in China. About a year ago, Eight Roads let go more than a dozen people on its China tech team, leaving a handful to take care of its existing portfolio, a person familiar with the matter said. The most recently announced China tech deal by Eight Roads was in 2023. According to Eight Roads' website, more than 20 people out of its some 30 staff in China focused on health care, while four focused on tech. Eight Roads' retreat underscores the challenges US investors face in China. Investment exits via public markets have been tightly controlled, as many startups need a nod from China's securities watchdog even when seeking to list offshore. In Hong Kong, recent blockbuster deals like the listing of the Contemporary Amperex Technology Co. revived sentiment for initial public offerings. Yet longer term investors are still waiting for more conviction to return to the region, especially for early-stage tech firms confronting an economy under deflationary pressure. Some investors have shown renewed interest in the country's AI scene, with more on-the-ground visits after DeepSeek's advances stunned Silicon Valley. But many are cautious committing new capital. Investors who have shown interest in Eight Roads's assets include some Chinese tech-focused private and venture capital funds and a Hong Kong-listed financial firm, the people said. After a separation in 2019 from Fidelity International, which is backed by the Johnson family, Eight Roads said it still counts on the Fidelity network for funds and had no plans to raise third-party money. Abigail Johnson is the chief executive officer of FMR Corp., the parent of Fidelity Investments. She has a net worth of more than $39 billion, according to the Bloomberg Billionaires Index. This article was generated from an automated news agency feed without modifications to text.
Yahoo
16-05-2025
- Business
- Yahoo
How Many People Are Hiding Significant Purchases or Debt From Their Spouse?
Money is one of the most common sources of tension in relationships because it often triggers negative emotions related to respect, control and self-worth. According to Fidelity Investments' 2024 Couples & Money study, nearly 25% of couples identify money as their greatest relationship challenge. Read Next: Learn More: So it isn't surprising that 28% of Americans admit to hiding significant purchases or debt from their spouse or partner, according to a recent survey by Western & Southern Financial Group. This finding shows just how difficult it still is for many couples to have honest conversations about money. The survey by Western & Southern Financial Group looked at how and when couples talk about finances, especially in the context of long-term commitments like marriage. Not only did 28% say they've hidden big financial decisions from their partners, but the survey also found that 40% of married Americans consider financial dishonesty a dealbreaker in a relationship. Women were more likely than men to say they'd leave a relationship over financial secrets (42% of women versus 36% of men). And though many believe in waiting until a relationship becomes more serious to talk about money, the data suggests that putting off these conversations may cause more harm than good. The survey also found that nearly 1 in 4 people didn't talk about debt until after they were married. This could cause major friction if one partner has significant financial baggage. Be Aware: Hiding financial information, whether it's secret credit card debt or a splurge your partner didn't know about, is a form of 'financial infidelity.' Like emotional or physical infidelity, it often stems from fear, shame or a desire to avoid confrontation. Here are some common reasons people hide purchases or debt: Fear of judgment: Many people worry that their partner will be disappointed or mad at their financial habits and mistakes. Avoiding conflict: Money is one of the most emotionally charged topics in a relationship, and some people would rather keep secrets than spark an argument. Maintaining control: In some relationships, one partner may feel the need to keep part of their financial life private, especially if there's an imbalance in financial power. Shame: Guilt over past spending or financial mistakes can lead someone to hide the truth, even if their partner would be supportive. But as understandable as these motivations may be, secrecy around money can lead to resentment, broken trust and long-term relationship issues. It's never too late to build financial transparency in your relationship. Here's how to get started. If you haven't already, set up a weekly or monthly check-in where you and your partner review spending, upcoming expenses and shared financial goals. Keeping it routine helps remove the emotional weight and turns money conversations into a normal part of your life together. If you've been hiding debt or spending habits, coming clean about everything at once might feel too overwhelming. Instead, you could start by being honest about one recent purchase or a small area of debt. You can then gradually share more once you become comfortable discussing finances with your partner. Making your partner feel ashamed of their financial past will only make them less willing to open up. So try to set a tone of mutual understanding and curiosity instead of criticism. Ask questions, listen actively, and try to understand your partner's financial background and emotional triggers. Some couples find that having a mix of shared and individual accounts gives them the freedom to spend independently without secrecy. You can agree on how much goes into each account every month and what the joint funds cover while still maintaining some sort of autonomy. If the topic is too sensitive or has already caused friction, you might want to see a financial therapist or couples counselor. A third party can help facilitate difficult conversations and guide you both toward healthier habits and expectations. If you and your partner aren't on the same page financially, it can create cracks in the foundation of your relationship. And that damage caused by financial infidelity can take years to repair. But if you make the effort to build financial intimacy, it can actually bring you closer. According to research from the Indiana University Kelley School of Business, married couples who manage their finances together may love each other longer. And according to the Western & Southern Financial Group survey, married couples with joint savings accounts report the highest marital satisfaction (94%) compared with those who have only personal accounts (82%). If you've been keeping financial secrets from your partner, consider this your sign to slowly open up. It might feel easier in the moment to hide a shopping spree or keep a lingering credit card balance to yourself. But in the long run, honesty will always be less expensive than broken trust. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money 5 Little-Known Ways to Make Summer Travel More Affordable How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Fidelity Investments, '2024 Couples & Money Study.' Western & Southern Financial Group, 'Money Talks Couples Can't Afford to Skip.' News at IU, 'Married couples who merge finances may be happier, stay together longer.' This article originally appeared on How Many People Are Hiding Significant Purchases or Debt From Their Spouse? Sign in to access your portfolio
Bloomberg
04-04-2025
- Business
- Bloomberg
Retail Traders Keep Plowing Into US Stocks, But Pace Is Slowing
Individual investors were plowing cash into their favorite stocks and exchange-traded funds on Friday, betting that a market selloff triggered by US President Donald Trump's trade war would present a buying opportunity in the long run. The group snapped up shares of Nvidia Corp. and Inc. amid a two-day slide that's wiped out more than $500 billion between the two companies, according to data tracking the users of Fidelity Investments' brokerage. They also added to market-tracking ETFs like the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF Trust in another contrarian bet.
Bloomberg
03-04-2025
- Business
- Bloomberg
Retail Traders Buy Into Tariff Rout, Snapping Up Tech Favorites
One of the worst days for US stocks since 2022 looks like a buying opportunity for the retail traders who have been among the market's biggest bulls in recent years. Small investors piled into many of their favorite assets, including Nvidia Corp. and the exchange-traded fund Vanguard S&P 500 ETF, as they bet that the market's latest tumble will provide another contrarian opportunity for long-term gains, according to data tracking the users of Fidelity Investments' brokerage.
Yahoo
26-03-2025
- Business
- Yahoo
Is GE Vernova Inc. (GEV) the High-Valuation Stock to Buy According to Billionaires?
We recently published a list of . In this article, we are going to take a look at where GE Vernova Inc. (NYSE:GEV) stands against other high-valuation stocks to buy according to billionaires. High-valuation stocks are typically characterized by metrics such as high price-to-earnings (P/E) ratios, price-to-sales ratios, and enterprise value to EBITDA (EV/EBITDA) multiples. These high valuations often mean strong investor confidence in a company's future growth potential. However, they also imply that the market has priced in substantial future earnings growth, leaving less margin for error if the company fails to meet expectations. Investing in high-valuation stocks has been a subject of debate among investors for some time. While some investors argue that these stocks are overvalued and pose a risk of correction, others view them as opportunities to gain exposure to industry leading companies with strong growth potential. In the U.S. market, high-valuation stocks are often associated with technology, healthcare, and consumer sectors, where innovation, brand strength, and market dominance justify their premium pricing. The current market environment has been supportive of high-valuation stocks. In a February interview with CNBC, Fidelity Investments' Director of Global Macro, Jurrien Timmer, noted that the bull market, which is around 28 months old now, has delivered substantial returns. While some market cycles end around the 30-month mark, history shows that many extend further. Strong earnings performance has supported valuations, with 78% of companies beating expectations in the fourth-quarter earnings season. Echoing this sentiment, in a February discussion on CNBC, Ed Yardeni of Yardeni Research highlighted that while valuations are stretched, the earnings landscape remains strong. He emphasized that stock markets are primarily driven by earnings and valuation dynamics. Even though high-valuation stocks like the 'Magnificent Seven' have stopped rising on a valuation basis, their earnings potential continues to look promising. Sectors like AI, robotics, and automation remain key drivers of long-term growth, fuelling investor confidence. While earnings continue to support valuations, some experts argue that broader macroeconomic conditions play an equally important role. Julian Emanuel, senior managing director at Evercore ISI, provided good context in CNBC's 'Closing Bell' program on March 19. He noted that valuations have moderated from 'very expensive' to just 'expensive,' suggesting that some of the issues have been factored in. More importantly, he emphasized that valuation alone does not end bull markets. Unlike previous cycles, where an uncooperative Federal Reserve contributed to market downturns, Emanuel believes that the Fed's expected rate cuts in 2025 will provide continued support. Additionally, he points out that bond yields have remained contained, which reduces competition for equities and supports higher valuations. Despite concerns over rising bond yields and a maturing economic cycle, the fundamentals of the U.S. economy remain strong. Ed Yardeni pointed to steady employment levels and robust retail sales growth, which suggest that consumer spending remains healthy. As long as corporate earnings continue to support current valuations, the case for investing in high-valuation stocks remains intact. That said, these stocks aren't without risks. One of the biggest risks to high-valuation stocks is the potential for higher interest rates. Research has pointed out that if long-term yields rise above 5%, it could create more competition for equities. When risk-free returns from government bonds become more attractive, investors may demand higher risk premiums from stocks, leading to valuation corrections. Additionally, sector-specific challenges can impact high-valuation stocks. For example, companies in the artificial intelligence (AI) and cloud computing sectors, have generally received high valuations based on growth expectations. When expectations are reset due to some sector dynamics, these stocks often tend to correct first. Investors looking to invest in high-valuation stocks should focus on companies with strong fundamentals and long-term growth drivers. Companies with dominant market positions, innovative product offerings, and recurring revenue models tend to justify their premium valuations. To identify the 10 high-valuation stocks favoured by billionaires, we began by using online stock screeners to filter companies trading at a forward price-to-earnings (P/E) ratio between 50 and 150, as valuations above this range tend to carry higher risk due to elevated growth expectations. Next, we analyzed Insider Monkey's database of billionaire holdings to determine which of these high-valuation stocks were most favoured by billionaire investors. Finally, we ranked top 10 of the shortlisted stocks in ascending order based on the number of billionaire investors holding stakes in each company as of Q4 2024. Additionally, we provided insights into hedge fund sentiment surrounding these stocks using Insider Monkey's Q4 2024 hedge fund holdings are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Dmitry Kalinovsky/ Vernova Inc. (NYSE:GEV) is a newly formed entity as part of General Electric's split in early 2024. The company is a prominent name in electric power industry and focusses on products and services including generation, transfer, conversion, and storage. It operates across renewable energy, power generation, and grid technologies, playing a key role in decarbonization efforts. An RBC Capital analyst lowered the price target on GE Vernova Inc. (NYSE:GEV) from $453 to $445 while maintaining an Outperform rating, in a March 18 report. The analyst noted that ISO filings indicate combined cycle gas turbine (CCGT) equipment costs have risen another 15% since November, with gas turbines up about 30%, which signals strong market demand. This reinforces the long-term growth potential from price increases. While the analyst raised EPS estimates for FY 2026 and 2027, he adjusted the price target to reflect current market conditions. On March 19, Barclays analyst Julian Mitchell also reiterated his Buy rating on the company with a price target of $427, implying a 28% upside potential. Overall, GEV ranks 2nd on our list of high-valuation stocks to buy according to billionaires. While we acknowledge the potential of GEV to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
