Sponsored by West Red Lake Gold Mines

Wealthsimple launches PE fund for retail investors

Private equity for the people. Because there isn’t enough high risk investing options for the average investor, Wealthsimple this week partnered with LGT Capital Partners to offer retail investors the opportunity to invest in private equity deals.

The platform announced the new offering, Wealthsimple Private Equity, on Wednesday, while stating that private equity provided average returns of 10.5% from 2001 to 2023, versus the market average of 5.7%, which was then followed up with the statement that “given the current economic conditions,” they expected PE to outperform the stock markets by 3%, net of fees.

The new fund meanwhile is calling for annualized long-term return targets, which is said to be a span of 10+ years, of 12% to 14%.

You can read more on the matter here.

What’s going on?

• Microsoft Made Preparations to Absorb OpenAI’s Departing Staff — Except They Didn’t Leave (theDeepDive)

• Take-Privates in Canada Outnumber IPOs as Market Treads Water (Bloomberg)

• Suspect Arrested in Shooting of Three Students of Palestinian Descent in Vermont (WSJ)

• Greenhouse Gases In the Atmosphere Soared Again in 2022 (theDeepDive)

• Americans ditched big cities during the pandemic. Now many are regretting it. (BusinessInsider)

• Sam Altman’s Ousting At Y Combinator Draws Parallels To OpenAI Drama (theDeepDive)

• Biden to invoke Cold War-era law to boost medical supplies (Reuters)

• UK May Ban Tesla’s Full Self-Driving Technology Under New Driverless Car Laws (theDeepDive)

• US new home sales fall more than expected in October (Reuters)

• No, Siemens Is Not Exiting Wind Power – But Will Cut About €400 Million In Costs (theDeepDive)

• Just How Bad Is the US Cost-of-Living Squeeze? We Did the Math (Bloomberg)

What’s the latest?

• Tesla Sues Sweden: Tesla has filed lawsuits against the Swedish Transport Agency and state-owned postal company PostNord due to a workers' strike that halted the distribution of license plates for Tesla's vehicles in Sweden. The strike, initiated by IF Metall, Sweden's largest manufacturing union, aims to secure a collective bargaining agreement for Tesla's mechanics. Tesla, which typically does not sign such agreements, claims its employees have comparable or better terms.

• Ozempic Rivalry: A new study by Truveta Research indicates that Eli Lilly's diabetes drug Mounjaro is more effective for weight loss in overweight or obese adults compared to Novo Nordisk's Ozempic. The analysis, which is one of the first to compare these drugs in a real-world setting, found that patients on Mounjaro were 3x more likely to lose 15% of their weight, and 2.6x more likely to lose 10% of their weight.

• US Home Sales Fall: In October, U.S. new home sales fell by 5.6% to a seasonally adjusted annual rate of 679,000 units, with September's sales pace revised down to 719,000 units. The drop is attributed to the impact of higher mortgage rates on affordability. Despite this decline, the housing market remains supported by a low supply of previously owned homes.

• Housing Correction: TD Economics has revised its forecast for the Canadian housing market, now expecting a 10% drop in home prices, doubling its previous estimate of a 5% decline. This revision is attributed to higher bond yields and significant market loosening in Ontario and British Columbia. Despite this anticipated decline, average home prices would still be 15% higher than pre-pandemic levels.

• More EV Job Cuts: Lion Electric Co. is cutting 150 jobs, about 10% of its workforce, across various departments in Canada and the U.S. This move aims to reduce costs and help the company achieve its profitability goals. Despite the job cuts, Lion Electric, which specializes in electric trucks, buses, and minibuses, reported an increase in revenue to US$80.3 million in the third quarter, up from US$41 million the previous year.

Is 9-5 still worth it?

The stock market and stuff

• Ivanhoe Mines Steps Into Angola With Massive Land Package Prospective For Copper (theDeepDive)

• Shopify Reports Black Friday Sales Of $4.1 Billion On Platform (theDeepDive)

• Apple iPhone maker Foxconn to invest $1.5 billion in India as it looks to build beyond China (CNBC)

• Binance CEO Changpeng Zhao Pleads Guilty, Explained (theDeepDive)

• Is Jeff Bezos Selling Over $1B Of His Amazon Stake? (theDeepDive)

In the juniors

• Aston Bay Identifies Copper In Surface Samples At Tempest Prospect (theDeepDive)

• GoldMining Quietly Renews US$50 Million At-The-Market Financing (theDeepDive)

• Flying taxi firm Lilium receives EU approval for its electric jets (CNBC)

• F3 Uranium Hits 5.5 Metres Of 7.56% U3O8 At JR Zone (theDeepDive)

FULL DISCLOSURE: West Red Lake Gold Mines is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of West Red Lake Gold Mines. The author has been compensated to cover West Red Lake Gold Mines on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.