Nelson Peltz's Trian and General Catalyst to Buy Janus Henderson

Bloomberg

Watch Nelson Peltz's Trian and General Catalyst to Buy Janus Henderson - Bloomberg on Dailymotion

Transcript

00:00But this is a massive deal.

00:02General Catalyst and Tryon taking Janice Henderson, an asset manager, private.

00:06I mean, do they need access to the funds that Janice Henderson would have in reserve?

00:12Yeah, I mean, I can imagine, Vani, that the private equity group is very much interested

00:19in the funds under management by Janice Henderson.

00:22And it really just speaks to kind of the broader evolving just landscape of finance, right?

00:29We have seen a lot more institutional investors, the likes of pension funds, for instance,

00:34playing with the idea of diving into private equity, where, of course, there's a lot more

00:38rewards potentially, but also potentially a lot more risk just because of the fact that

00:43the companies involved in this space very differently structured from publicly traded companies.

00:49But, you know, there's a wall of money out there, right?

00:51Like waiting to be put to work, especially now that we're kind of potentially seeing a

00:57shift in the interest rate landscape as well.

00:59And so, yeah, you have to imagine that, you know, the interest in fund assets under management

01:06with Janice very much of interest among these types of companies, private equity.

01:13And conversely, the investors with Janice as well, potentially interested in those assets

01:18as well.

01:18Of course, there is a lot more M&A happening, a lot more IPOs, animal spirits are up, and

01:25investors, strategists are bullish, right?

01:29We have a story on the Bloomberg showing that there's really tightly clustered targets all

01:33headed in the same direction.

01:34Absolutely, Matt.

01:35And really, to be expected, right?

01:38Because it really has not paid off to be a bear in really the past decade when it comes

01:42to the equity market.

01:44Over the past decade, we've seen the S&P 500 deliver annual gains for, what, seven out

01:49of the last 10 years.

01:50And the years that it did deliver annual declines, it was really more because of external shocks

01:56rather than whatever's going on with the market exclusively.

02:00And, you know, very interesting, actually, the forecasts.

02:03We're looking for around an 11% gain for the S&P 500, which is half of what we've seen

02:09over the last two years.

02:10So you could argue, actually, maybe they are bullish, but a little less so than the

02:14last couple of years.

02:15But it's a little bit terrifying, though, right, Christine?

02:17Because, you know, all those fragilities that have been out there for the last several

02:21months are still there.

02:22Very few of them have been resolved.

02:24So the tariff uncertainty is still there.

02:26We don't know what the SCOTUS decision is going to be.

02:28You know, the effects of the one big beautiful bill, we don't know what that's going to be

02:31next year.

02:31The data is a little distorted, if not stale completely.

02:34So how can analysts be so sure?

02:36Well, I mean, Vani, again, right?

02:39Just kind of the expectation for that much of a gain, which is, when you put it into

02:43context of the broader S&P 500 moves that we've seen over the last few years, it is

02:48a little bit less, right?

02:49And so the bullishness has been tempered.

02:51And you're absolutely right.

02:51So many risk events here.

02:53And I think that is what kind of is causing a little bit of that more subdued outlook.

02:57I mean, when it comes to the Supreme Court decision on tariffs, very much a focal point

03:00for markets next year.

03:01We have seen, though, from the latest Markets Pulse survey that my team does, that people

03:06are optimistic about the potential for the removal of those tariffs.

03:09So the expectation is that the S&P 500 is more likely to go higher if we do see, in fact,

03:15the removal of those tariffs, probably just because of an improvement to risk sentiment.

03:19And what's the MLive team have planned for the holiday?

03:21How do you staff up through?

03:24Well, I guess President Trump has wanted to make Christmas Eve and Boxing Day holidays as

03:28well.

03:28Don't worry, Matt.

03:30Matt, we're going to be around.

03:31I'm going to be around personally, keeping the lights on.

03:34But no, I mean, yeah, I think, you know, these days actually are the most dangerous in some

03:38ways when it comes to the market movements.

03:41I mean, a few years ago, I remember, what was it?

03:43December 24th was the biggest day for equity volatility a few years back.

03:48And so we're coming to that point in time where volatility is low.

03:52You have much fewer players.

03:53And that is when there is greatest potential for markets to gyrate wildly.

03:58Especially if we have any sort of unexpected risk that's playing out.

04:02So don't worry about it.

04:03We're going to be around.

04:04Call on us if you need anything.

Category

Transcript

Be the first to comment

Recommended