EdgePoint reading and listening list
Summer's almost here and so is our annual summer reading (and listening) list. The Investment Team shared some of their top recent reads and podcasts, including deep dives into some of the largest companies in the world today.
A few charts worth discussing
“Canada is falling behind on business investment per worker. Both the numerator and denominator are impacting this trend – Canada has combined liberal immigration with regulations and policies that have made business investment more difficult and less attractive.”
Submitted by Jason Liu:
Other charts worth pointing out
Chinese vs. U.S. AI model usage
Top AI models by price
Chinese solar panel export revenue
Solar panel installation in China
Chinese clean-tech exports
2-year Treasury yields vs. Brent crude oil prices
U.S. equity market capitalization vs. global GDP
U.S. corporate bond index duration
AI sector corporate bond supply
MSCI US Momentum Index vs. S&P 500 Index (equal weight) – relative returns
MSCI US Momentum Index vs. S&P 500 Index (equal weight) – relative 3-month performance
Russell 2000 Index vs. Russell 1000 Index – YTD performance by sector
MAG7 vs. Semiconductor index performance
Apollo’s flagship private credit fund hit by 17% redemption requests
Investor redemption requests at Apollo’s flagship retail private credit fund surged to 17 per cent of the vehicle’s value in the second quarter, underscoring fears of falling returns and rising stress in debt markets.
The firm’s $15bn Apollo Debt Solutions fund pitched to wealthy individual investors reported roughly $2.4bn of withdrawal requests in the most recent period. The fund met less than 30 per cent of the withdrawals it faced in the quarter, capping redemptions at 5 per cent of the value of the vehicle.
The Apollo fund, which has an investment portfolio worth nearly $26bn, had been hit with withdrawal requests of 11 per cent in the first quarter.
The rising withdrawal requests at the fund signal that the broader investor exodus from private credit has not abated, even as public markets have rallied and a sell-off in loans to private equity-backed software companies has moderated.
The funds have been a significant fundraising source for private investment groups, offering lucrative fees for the asset managers. However, private credit has faced scrutiny over its lending to the software industry, given the risks companies face from advances in AI.
Investors have sought to pull nearly $15bn from nine major funds tracked by the FT in the second quarter. The funds, which manage roughly $200bn across their investment portfolios, have met less than 40 per cent of the withdrawal requests.
Apollo said it recorded $300mn of new commitments to the fund, which it said would limit net outflows to $400mn in the quarter. It also noted that redemption requests were concentrated from investors in its offshore funds, typically pitched to non-US investors.
This week’s fun finds
Devin (left) from the Compliance Team organized a fun build-your-own-taco moai. It was a fun way to bring everyone together for delicious bites and great company.
In This Polish Village, All 5,600 Residents Live on the Same Street
When a drone captured a bird’s-eye view photo of a sleepy Polish town, one feature stood out, taking the village from a relatively unknown dot on a map to a social media phenomenon.
That wow-worthy feature? Everyone in Suloszowa — with a population of 5,672 in 2023 — lives on one single street. What impresses in the aerial picture is not only the 5.6-mile road with homes dotted on either side of it, but the billowing ribbons of yellow, green, and gold fields stretching out from behind them, forming living art in the surrounding countryside.
Suloszowa is located about 21 miles northwest of Krakow, in a rural pocket of southern Poland. The main industry is farming, with residents raising livestock and growing crops like wheat, oats, and rapeseed. Local life tends to revolve around agriculture, and annual harvest festivals with names like Strawberry Days and Potato Days bring the villagers together to celebrate the seasons’ bounties.
