☕️ Regal reigns

From $5b to $18b, Regal defies the downturn

Good morning.

Regal Partners has topped $18 billion in funds under management, tripling its size in two years while Magellan – and others – flounder, down to $38.6 billion from a 2020 peak of over $100 billion.

Phil King’s hedge funds delivered strong returns, but it’s Regal’s aggressive acquisitions—PM Capital, Merricks and stakes in Taurus—that have positioned it as the industry’s most ambitious player. As the AFR notes, even a failed Platinum deal underscores its appetite for scale.

With $700 million in net inflows last quarter, analysts are betting on more deals and continued momentum.

ASX as at market close. Commodities and crypto in USD.

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Market movers

GQG shares copped a 10.14% hit yesterday, sliding all the way to $1.95, after December outflows hit US$200 million ($321 million). Bribery charges against Adani Group, one of its major holdings, have spooked investors and fuelled redemption pressure.

A notable mover mention for spray-on skin hopeful Avital Medical, which nosedived 19% after it confessed it would miss revenue forecasts.

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The quick sync

  • Swyftx claws back to a $32.4m profit after a tumultuous crypto winter, fuelled by trading surges and eyebrow-raising loans from its own founders. (Capital Brief)

  • Bill Ackman’s bold Fannie Mae and Freddie Mac gamble aims for massive 1,200% returns, but political roadblocks and market risks could make it a costly miscalculation. (Bloomberg)

  • Employment Hero’s $112m purchase of Canadian HR firm Humi is a bold entry to North American markets and a pivot to acquisitions after struggles with overseas expansion. (Capital Brief)

  • Elon Musk’s rise to the top ranks of “Diablo IV” has gamers questioning how the CEO of six companies and Donald Trump’s right-hand man found time for the grind—or if he even played fair. (WSJ)

  • Xi Jinping muzzles top economist Gao Shanwen for exposing doubts about China’s GDP figures and economic stability, revealing cracks in Beijing’s financial facade. (WSJ)

Trading floor

M&A

  • Jon Adgemis' hospitality group successfully completed a rescue deal, despite the ATO's opposition, with a $7.7m plan to settle debts. (The Australian)

  • Meta ends US fact-checking, potentially threatening Australian agreements. (Capital Brief)

  • UK competition watchdog says it may greenlight US$35b Synopsys-Ansys merger if key software divisions are sold. (Reuters)

Capital Markets

  • Bloks Group's $215 million Hong Kong IPO sparked a frenzy, with retail investors bidding over 6,000 times the available shares. (Bloomberg)

  • Quantum computing stocks plummet, shedding over $8 billion, after Nvidia’s Jensen Huang warns practical applications are 20 years away, cooling investor optimism. (Reuters)

  • Iluka Resources and Worley gained on the ASX as Goldman Sachs highlights strong growth potential. (Capital Brief)

  • Star Entertainment faces a cash crunch, with reserves down 46% and ongoing trading and regulatory challenges. (The Australian)

  • Incy Interiors continues trading despite previous closure announcement, handling customer complaints, and the removal of its Facebook page. (Smart Company)

  • Qantas boosts profits by expanding TripADeal into cruising. (The Australian)

  • Gold miners top ASX 200 as prices rise, production grows, and central banks buy gold. (Capital Brief)

  • Cocoa farmers in West Africa are ripping up their crops as disease, failed policies, and climate chaos push production to historic lows, despite record-breaking prices. (WSJ)

  • US crude oil stockpiles fell for a seventh straight week, aligning with forecasts, as refinery output surged, driving significant builds in gasoline and distillate inventories. (WSJ)

VC

  • How Matched’s founders bridged Melbourne and Sydney with brutal honesty, co-founder therapy and a $500k raise to reshape how people monetise their skills. (Capital Brief)

People moves

  • Goldman Sachs exec Zac Fletcher’s Point Piper apartment has set a record $13m sale, snapped up by leather goods heir Brian Topper. (AFR)

  • OpenAI's o3 model has computer science students panicking over job prospects, as its advanced reasoning threatens to automate tasks once reserved for humans. (Axios)

  • A former Western Australian Institute of Sport employee claims she was bullied after helping Olympic athlete Nina Kennedy report abuse and was threatened with job loss over medical file disclosure. (The Australian)

  • Cass Fuller, CEO of a rival to Lovisa, sues Shane Fallscheer’s Harli + Harpa for wrongful dismissal. (The Australian)

  • US jobless claims hit 201,000, showing labor market strength. (Capital Brief)

  • 78 million new jobs by 2030 require urgent upskilling, says WEF. (Capital Brief)

  • Australian job vacancies rise, staying above pre-pandemic levels. (Capital Brief)

  • Next Science faces legal action from a former US employee alleging fiduciary breaches and mismanagement. (BNA)

☝️ Know about a deal or people move we don’t? Hit reply.

The watercooler