☕️ AI pullback

Good morning.

Who doesn’t love a contrarian bet? The FT is reporting Peter Hargreaves’ Blue Whale Growth fund is doing just that and cashing in on Big Tech.

Microsoft’s weight in the portfolio has dropped to 2%, as fund manager Stephen Yiu warns “Microsoft’s return on invested capital [is] likely to decline from here, given the significant investment made in AI infrastructure.” Meta and Amazon have also been scaled back, leaving Nvidia as the lone standout, at 10% of the fund.

Yiu’s shift echoes recent moves from heavyweights like Warren Buffett and Terry Smith, who have been cutting stakes in tech majors as AI spending is set to grow past US$200 billion ($314.27 billion) this year.

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Market movers

Insignia shares jumped Friday after Bain bid $2.68 billion for the wealth manager at $4 a share—a solid 18% premium on its $3.40 close. Shares jumped over 6% to $3.61 as the board weighs up due diligence and regulators.

The quick sync

• Indie publishers back Labor’s tech levy to secure fair funding, as TikTok criticises and Microsoft stays silent. (Capital Brief)

• Sydney fusion startup HB11 inks deal to supply laser targets to Europe’s top laser labs, advancing its path to monetising fusion tech. (Capital Brief)

• ASIC is investigating Kogan over a potentially lucrative options deal involving its CEO and CFO. (AFR)

• ANZ cracks down on leaks as risk chief slams breaches, cultural failings and looming AGM pressures test investor trust. (AFR)

• An emergency cash injection from Brookfield buys Healthscope time to restructure $1.6b debt amid soaring costs and insurer standoffs, as the PE giant fends off voluntary administration chatter as rival hospital operators circle. (AFR)(The Australian)

Trading floor

M&A

• Amcor's proposed acquisition of Berry Global Group is gaining momentum as key investors express support for the deal. (The Australian)

• Bain Capital's bid for Insignia Financial has sparked interest from other private equity firms, potentially leading to a bidding war. (The Australian)

• Japanese airline JAL and trading house Sojitz are joining forces to bid for North Queensland Airports. (AFR)

• Peter Warren Auto, a car dealership group, could be a potential takeover target due to its valuable real estate assets. (The Australian)

• Metrics Credit Partners is forcing the acquisition of a struggling BNPL company, Payright, despite opposition from minority shareholders. (AFR)

Capital Markets

• Affinity Private Equity has secured a $515m debt deal to finance its acquisition of Lumus Imaging. (AFR)

• BCI Central is suing CoreLogic for allegedly scraping data and poaching customers. (AFR)

• The London Stock Exchange is experiencing a significant decline in listings, with many companies choosing to list elsewhere, particularly in the US. (AFR)

VC

• NRL star Adam MacDougall and healthcare provider Aspen Medical have invested in WearOptimo, a Brisbane-based health tech company. (AFR)

People moves

• Former M&A head Jillian Wilson is suing Amalgamated Australian Investment Group for wrongful dismissal, underpayment, and being kept on a sham contract. (AFR)

• Alex Pikoulas, CEO of Harper Bernays and ex-investment banker, is launching a new wealth management firm with support from Anthony Sullivan, founder of Quantaco. (AFR)

The watercooler