ExodusPoint is on the comeback trail after a rocky 2022

Welcome back! Dan DeFrancesco in NYC. 

On tap, we’ve got stories on how Fidelity is valuing its investments in top tech startups, where the uber rich invest their money, and the stocks to bet on if you’re buying the AI hype.

But first, who’s in first?

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1. How’d we do?

It’s the beginning of the month, which means a chance to see how the top hedge funds are performing.

Insider’s Alex Morrell has February performance figures for some of the top funds in the industry, including Citadel, Point72, and Millennium. 

But the top dog among large multi-strategy hedge funds was ExodusPoint. In fact, the fund did so well it now has the best year-to-date performance among the group, closely followed by Citadel. 

It’s a bit of a comeback story for ExodusPoint. Earlier this month, Alex reported on how the hedge fund had a difficult 2022, ending the year with fewer assets, employees, and portfolio managers than it started the year with. While ExodusPoint’s returns, which were between 5.5% and 6% (depending on share class) last year, beat the broader market, they lagged way behind fellow multi-strategy giants.

But that’s all in the past, and what matters is the present, which is looking pretty good for ExodusPoint. There are lots of reasons for the turnaround, I’m sure, but I’d like to think it’s because of this very newsletter.

When I wrote about Alex’s initial story, I had this general piece of advice: Play the hits!

Everyone wants to be good at lots of different things, but sometimes it pays just to be really good at one thing. (Perhaps another big Wall Street firm could heed this advice?)

Since 10 Things on Wall Street is obviously a must-read for everyone on the Street, I’m sure the folks at ExodusPoint followed my tips, which led them to having a fantastic month.

Click here to check out the performance of top hedge funds like Citadel, Millennium, and Point72.

In other news:

2. Here’s how Fidelity views top private companies like Stripe, Instacart, and Reddit. The firm’s latest monthly holdings report provides insight into how Fidelity values its investments in the high-profile tech startups. Here’s a rundown of how Fidelity marked its investments.

3. What do people with an endless supply of money invest in? A new report details the finances of the world’s wealthiest people. Here’s a breakdown of the typical portfolio of the ultra rich.  

4. Measuring the “impact” of impact investing isn’t easy. Impact funds, which target companies or projects focused on social or environmental causes, have more than $322 billion in assets under management. But measuring how successful their investments have been is proving difficult. Here’s why.

5. Leo and Kim K were both interviewed by the FBI over the 1MDB scandal. Jho Low, who is accused of being behind the 1MDB scandal that also involved Goldman Sachs, referred to Leonardo DiCaprio as “L-Dizzle” in messages. Meanwhile, Kim Kardashian once flew home from Las Vegas with $250,000 in a trash bag after a card game with the disgraced billionaire. For more on the US government’s investigation into 1MDB and how rapper Pras Michél got involved, check out this deep dive from Bloomberg.

6. So you want in on the AI boom? Bank of America outlined the 20 stocks to bet on if you’re hoping to ride the wave. Here’s the rundown, and may the odds be ever in your favor.

7. How to know if you’re getting pushed out. “Quiet firing,” corporate America’s response to “quiet quitting,” perhaps, is all the rage these days. Here are six ways to see if the writing is on the wall.

8. Working on Wall Street is so bad this woman left to clean up crime scenes. Stacey Foyster detailed how after a decade on Wall Street in risk analysis, she opted for a career change. In a ringing endorsement for life in finance, Foyster, who has cleaned prisons smeared with feces and cleared out drug dens, said she’d “never felt more fulfilled in my life and work.” Check out all the grisly details.

9. Just a nip and tuck. A plastic surgeon for the rich highlights the four most popular procedures patients want these days. Read them all here. And if you’re looking for a tune up but not interested in going under the knife, here’s how you can make private Botox parties a lucrative side hustle.

10. Fine dining that won’t break the bank. A Michelin-starred restaurant where dishes cost $1.60?! Yes, you’ll need to fly to Malaysia to eat there, but let’s not get bogged down in the details. Here’s why it’s worth the trip (along with some photos).

Curated by Dan DeFrancesco in New York. Feedback or tips? Email [email protected], tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Nathan Rennolds (@ncrennolds) in London.