☕️ Hedge fund FOMO

Good morning.

Hedge funds are back on the tech hype train, snapping up US tech and media stocks at their fastest pace in four months, according to a prime brokerage note by Goldman Sachs.

Betting big on an anticipated Fed rate cut ahead of the jumbo cut last week, they’ve tripled their long positions in information technology, showing particular love for semiconductor and related equipment companies, while tech hardware got the cold shoulder.

And gross leverage is getting spicier at 278%, among the year's highest.

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Market movers

Shares in bookings business Web Travel Group, formerly Webjet, dived 10.7% on Monday, reflecting the completion of the demerger of its consumer-facing unit.

That unit will now be separately listed on the ASX, owning the Webjet OTA, GoSee and Trip Ninja brands.

The quick sync

• Abrdn’s Nick Robinson says the fund’s Chile and China bets hint at a potential turnaround for unloved EM after a “pretty grim” decade. (Capital Brief)

• The Guardian's Australian profits doubled to $1.3m, but unionised staff are now mulling an indefinite strike after voting for a protected action ballot. (Capital Brief)

• Israel's tech sector raised US$9b ($13.17b) amid the Hamas conflict but faces funding uncertainty, with mature startups thriving while others struggle, says Israel Innovation Authority. (Reuters)

• The ACCC is suing Coles and Woolworths over misleading discounts, calling it as significant as the Qantas ghost flights case. (Capital Brief) (The Australian)

• Investors fear ASX-listed companies are hoarding earnings rather than using the money to expand or return it to shareholders amid a sharp Q2 decline in dividends. (AFR)

Trading floor

M&A

• REA hikes Rightmove bid to $11.9bn, with analysts flagging the prospects of an equity raising as News Corp faces dilution. (Capital Brief)

• Italy’s UniCredit increased its stake in Commerzbank from 9% to 21% using derivative contracts, as CEO - and former financial institution investment banker - Andrea Orcel challenges Germany's stance against a takeover. (Capital Brief)

• Telix Pharmaceuticals will acquire US radiopharmacy network RLS, enhancing its North American manufacturing and distribution platform. (Capital Brief)

• Apollo Global Management is poised to invest up to $5bn in Intel, endorsing its turnaround strategy and offering an alternative to a possible Qualcomm takeover. (Bloomberg)

• South32 has been awarded a US Department of Energy grant to advance its Hermosa project. (Capital Brief)

• SPC Global is in advanced merger talks with the Original Juice Company to diversify its offerings and enhance market presence. (AFR)

• LDC has increased its stake in Namoi Cotton amid a bidding war with Olam Agri, even though Namoi's directors support Olam's offer. (Capital Brief)

• Johns Lyng Group is acquiring a majority stake in Keystone Group to strengthen its insurance building and restoration services. (Capital Brief)

• AustralianSuper is the frontrunner in the bidding for Queensland Airports, owner of Gold Coast Airport, due to its tax advantage as an Australian entity. (The Australian)

• Nickel Industries has acquired a 51% stake in Indonesia's Siduarsi nickel-cobalt project, one of four active nickel contracts of work in the country. (Capital Brief)

• ASX uranium miners rose after Constellation Energy secured a 20-year deal with Microsoft to support clean energy projects, including the restart of the Three Mile Island nuclear plant. (Capital Brief)

• Pemba Capital Partners is in exclusive talks to buy Allianz’s Hunter Premium Funding business, which has an annual turnover of $2bn, after resolving financing issues. (AFR)

• Regal has boosted its stake in Zip Co, which has seen an 860% stock increase in the past year, positioning itself as a strong supporter of the buy now, pay later company. (AFR)

Capital Markets

• Scalare Partners is moving forward with its October 2024 ASX listing after ASIC lifted stop orders on its prospectus and target market determination. (Capital Brief)

• Body scanning firm Evolt 360 eyes ASX listing before Christmas, backed by Regal, Soul Patts and Perennial to cash in on the Ozempic boom. (AFR)

VC

• Migration tech startup Matilda raises $1m pre-seed to simplify Australia’s visa process. (Capital Brief)

People moves

• James Warburton will join Boost Media as a strategic partner after CVC Emerging Companies, now 248 Growth Partners, acquired a 30% stake in the firm. (AFR)

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The watercooler