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Good Morning,

Microsoft posted a solid quarter, Tesla is up to bat after market close, GM is investing a ton of EV money in Michigan, Pelosi is running for reelection for the millionth term, US chip supply keeps getting tighter, a Swiss banker spent a ton at strip clubs, Barry Bonds' HOF bid got rug pulled, and Nvidia prepares to abandon ARM acquisition.

Bear markets might suck for your portfolios, but they produce A1 memes 🤝

Speaking of portfolios, today's sponsor, Composer, lets you build a portfolio of hedge fund-like strategies through its no-code software. More details below. 

Lastly, we've got more private investment opportunities coming your way. With a new deal circulating later this morning. If you're an accredited investor and want to be added to the list, fill out this brief survey.  

Let's dive in.

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Before The Bell

If you want to learn more about crypto trading strategies and the world of DeFi, check out our Foot Guns newsletter.

Markets

• Another choppy session as all of the major indexes opened low, climbed through the day, and sold off into the close.

• Tech lagged the rest of the market, with the Nasdaq down 2.3% on the day. The tech-heavy index is now down more than 13% YTD.

• Investors hope that Microsoft's strong earnings will provide some stability to markets. All eyes are on the Fed and Tesla today.

Earnings

• Johnson & Johnson’s Q4 report was mixed after they slightly beat earnings estimates but missed on revenue; hospital staffing shortages have hurt their medical devices business and supply chain constraints have hit their consumer health division (CNBC)

• Microsoft reported better-than-expected earnings and revenue for Q2 driven by strong growth in their Intelligent Cloud and Personal Computing segments (CNBC) 

• Verizon posted a beat-and-raise report with growth in their consumer wireless revenue and low churn rates (MW)

• Amex shares were on track for their largest single-day gain since Nov. 2020 after reporting better than expected Q4 numbers driven by record levels of spending on its cards (MW)

• GE reported Q4 revenue that fell 3% due to supply-chain difficulties, but projected a return to sales growth this year as its aviation business begins to recover (WSJ)

• Capital One reported falling profit in Q4 but better-than-expected revenue numbers due to strong credit results (MW)

• What we’re watching today: Boeing, Tesla, AT&T, Intel, Nasdaq

• Full calendar here

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Headline Roundup

• Nvidia quietly prepares to abandon takeover of Arm (BBG)

• Russia says US Troop decision raises tensions (BBG)

• New York mask mandate ruled unconstitutional by state judge, though it's back in effect while the decision is being appealed (BBG)

• Pfizer begins study testing omicron vaccine in people (WSJ)

• GM pumps more money into EVs, picks Michigan for big investment (WSJ)

• US companies down to five-day supply of key chips (WSJ)

• US sues to block Lockheed’s deal for rocket engine maker Aerojet (BBG)

• Pelosi to seek reelection in the fall; no comment on running for speakership (WSJ)

• Strip-bar habit worth $220K hangs over Swiss banker on Trial (BBG)

• Barry Bonds falls short of MLB Hall of Fame bid (WSJ)

• Eleven Ventures raised a $67.6M fund to invest in Southern European startups (TC)

• Post Road Group, a Stamford-based alternative investment firm focused on corporate strategies and real estate, raised $300M for ‘Special Opportunity Fund II’ (BW)

• LexShares, a tech-enabled leader in litigation finance, closed its second fund, dubbed the ‘LexShares Marketplace Fund II’, at $100M (PRN)

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A Message From Composer

I think I just found my new favorite investing app.

Context: Almost every hedge fund I know is getting absolute sh*t-pumped right now. But there are a few that are actually thriving YTD.

And it’s not because they are shorting stocks or buying shitcoins.

So how do they make billions in a sea of red? 

They use ~algorithms~ to do the trading for them.

Take Citadel, a $234 billion hedge fund, for example. They hire thousands of engineers to write millions of lines of code that consistently beat the market. Last year, Citadel was up 26%.

But unless you know how to code, quantitative trading has been out of reach. Until now.

Composer lets you create, design, and develop your unique trading strategies exactly the way you want, just like a quant shop. 

Check out some of their pre-loaded strategies:

• Buy the Dips Nasdaq (11.8% annualized return)

• Paired Switching S&P 500 and Gold (15.4% annualized return)

• Risk On or Risk Off Leveraged S&P 500 (13.9% annualized return)

But the BEST part is that you can make your own no-code quant strategy then have others put money in it. I can finally be a buyside PM. Check out the one I’m making right now:

I’m just getting started and will update you as I learn more – it’s pretty fun so far. It’s completely free and super simple to use – sign up for free here.

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Deal Flow

M&A / Investments

• Shimao Group has put up $12B of residential, office, commercial, and hotel assets across China up for sale (BBG)

• Change Healthcare is considering selling some assets to clear the way for its $8B acquisition by UnitedHealth (BBG)

• Chesapeake Energy agreed to buy natural gas producer Chief E&D for ~$2.6B (RT)

• Mediterranean Shipping Co. said its seeking a controlling stake in Italian flag carrier ITA Airways through a potential $1.4-$1.7B deal including Lufthansa (BBG)

• A group of investors led by TPG is considering a sale of its minority stake in jewelry maker APM Monaco at a potential ~$1.5B valuation (BBG)

• JPMorgan agreed to buy a ~49% stake in Athens-based payments fintech Viva Wallet at a $2B+ valuation (RT)

• German rapid grocery delivery company Gorillas is in exclusive talks to buy French delivery firm Frichti (BBG)

• Australian buy now, pay later (BNPL) firm Zip is in talks to buy smaller rival Sezzle, which has a current market value of ~$303.5M (RT)

• Walmart’s Mexico unit is considering strategic alternatives to its operations in Central America, including a sale or JV (RT)

VC

• Indoor vertical farm tech startup Plenty raised a $400M Series E led by One Madison Group and JS Capital (BW)

• Smartron, an Indian startup building tech for cars, smartphones, and wearables, raised $200M in financing from GEM (BW)

• Metagenomi, a genetic medicines company, raised a $175M Series B led by PFM Health Sciences and Farallon Capital Management (BW)

• Dremio, a data lake transformation startup, raised a $160M Series E at a $2B valuation led by Adams Street Partners (BW)

• Greenlabs, a startup member of Born2Global, raised a $140M Series C led by BRV Capital Management, Skylake Incuvest, and SK Square (PRN)

• HTEC Group, a global consulting software engineering and digital product development company, raised $140M in funding from Brighton Park (BW)

• SparkCognition, an AI software company, raised an $123M Series D at a unicorn valuation from March Capital, Doha Venture Capital, B Riley Venture Capital, and o (PRN)

• Nutritional drink startup Athletic Greens raised $115M at a $1.2B valuation in a round led by Alpha Wave Global (TC)

• Robotics software company Wandelbots raised an $84M Series C led by Insight Partners (PRN)

• Autonomous cell therapy manufacturing company Cellino raised an $80M Series A led by Bayer (BW)

• Jebbit, a zero-party data platform, raised $70M in a funding round led by Vista Equity Partners (BW)

• Behavioral science technology company Humu raised a $60M Series C led by TCV (PRN)

• Atlas Health, a startup building a patient advocacy solution, raised a $40M Series A led by Felicis Ventures (BW)

• Passport, an international shipping carrier built for cross-commerce, raised a $39M Series B led by TCV (PRN)

• Virtual photo shoot platform Soona raised a $35M Series B led by Bain Capital Ventures (TC)

• Carbon offset ratings provider Sylvera raised a $32.6M Series A led by Index Ventures (PRN)

• Sollis Health, a medical care membership service, raised a $30M Series A led by Torch Capital and Denali Growth Partners (PRN)

• Addionics, a chemistry-agnostic battery tech startup, raised a $27M Series A led by Deep Insight (BW)

• Autonomous mowing startup Electric Sheep Robotics raised a $21.5M Series A led by Tiger Global (BW)

• Eaglebrook Advisors, a digital-asset "separately managed account" (SMA) platform, raised a $20M Series A led by Castle Island Ventures and Brewer Lane Ventures (PRN)

• Cytovation, a company developing a targeted tumor membrane immunotherapy, raised a $20M Series A led by Sandwater (PRN)

• Klarity, a software startup building ‘someone to read documents instead of you’, raised an $18M Series A led by Tola Capital (TC)

• Owl Autonomous Imaging, a developer of monocular 3D thermal imaging, raised a $15M Series A led by State Farm Ventures (PRN)

• Codenotary, a startup helping development teams build secure software supply chains, raised a $12.5M Series B (TC)

• AI startup Metaphysic raised $7.5M in a round led by Section 32 (BBG)

IPO / Direct Listings / Issuances / Block Trades

• Fleet-services firm DKV Mobility is considering an IPO at a potential $3.4B+ valuation (BBG)

• Italian microelectronics company Technoprobe is considering seeking up to $902M in a Milan IPO (BBG)

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Exec's Picks

• If you are worried about inflation killing your savings, check out ZeFi – a Y Combinator-backed company with an app to save, spend and earn up to 8% APY on your deposits. How is 8% APY possible? The answer is DeFi, baby. Sign up here and get started for free in just a few minutes.

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Big Swinging Decks Podcast

ICYMI: Lit and Mark sat down with the “face, hair, and dad joke king” of FinTwit (and coffee connoisseur) — Douglas Boneparth

Doug discusses his background and offers crucial financial planning advice to the BSD Shareholders. In the Appendix Section, the duo releases the four finalists for the Super Bowl ticket giveaway in partnership with Ansarada – listen in on Spotify or Apple Podcasts and vote for your favorite banking “horror” or “hero” story on the Litquidity IG page today. 

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The Hiring Block

If you're looking to break into finance, lateral, or move out, check out our job board on Pallet, where we curate highly relevant roles for you. We've got 40+ jobs spanning IB, S&T, VC, tech, private equity, DeFi, crypto, CorpDev and more. We sift through all the noise on LinkedIn, Indeed, Monster, etc. so you don't have to.

See below for a few featured job opportunities:

• Matchbook Capital, the corporate venture arm of Swisher, is hiring an Associate to work out of their Jacksonville, FL office. The associate will be responsible for developing, managing, and owning incubations or acquisition projects to bring a new set of innovative products to market. The ideal candidate will have 2-5 years of experience in a start-up, start-up environment, or consulting firm. Apply here.

• Podium Education, one of the fastest growing edtech companies in the US, is hiring a Head of Finance to work out of their Austin, TX HQ. The HoF will be instrumental in scaling the business and maintaining the financial health of Podium as they enter a high growth phase. The ideal candidate will have at least 6+ years of experience in IB, PE, or FP&A. Apply here.

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Meme Cleanser

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