REUTERS/David Gray
Hello!
I want to start this newsletter with an extract from an internal memo Citadel founder and hedge fund billionaire Ken Griffin recently sent to staff. Here goes:
In recent months, we have all been impacted by the coronavirus pandemic. We are in an unprecedented moment of global distress as the entire world faces this common invisible threat. And when the chaos settles, we will be measured by the character we exhibit in our work and in our communities.
In the blink of an eye, we now find ourselves juggling countless new demands on our time, mental capacity and emotional energy. Amid great uncertainty, it is natural to feel thrust into a tailspin. Few of us have ever faced this level of uncertainty in our lifetimes, and the weight of a myriad of new demands will impact each of us differently. We will all have our moments.
That feels right. We will all have our moments. I hope you and yours are doing as well as can be expected given the circumstances. For those interested, you can read the full memo here:
'We are in an unprecedented moment of global distress': Read the full memo billionaire Ken Griffin sent to Citadel employees on the coronavirus crisis
Two quick programming notes:
Read on for more on a Wall Street trading bonanza and how to navigate the stock market uncertainty, how to benefit from the stimulus bill, and how Silicon Valley is stepping up.
A Wall Street trading bonanza
Alex Morrell and Dakin Campbell this week reported on Wall Street's coronavirus-fueled trading frenzy, where historic shocks of volatility are creating massive paydays.
Elsewhere:
- Wall Street's disaster playbook never included work-from-home trading. Insiders told Alex and Dakin how banks rapidly adjusted during one of the most chaotic markets in history.
- Rebecca Ungarino reported that Bank of America is pausing financial adviser training for 650 people and reassigning them to handle surging calls from consumer and small-business customers.
- A liquidity crunch for the hedge-fund industry's biggest backers could force redemptions on even top-performing funds, Bradley Saacks reported. Meanwhile, macro hedge funds are soaring while quants and stock-pickers tank. Here are the biggest winners and losers.
- Dakin reported on how a massive New York hospital secured 130,000 N95 masks from China with help from a senior partner at Goldman Sachs, private jets, and a call to Warren Buffett.
I've written before that there will be no going back to normal. The finance team had two great stories on that theme this week.
- Lee Olesky, cofounder and CEO of electronic-marketplace operator Tradeweb, which oversees more than $1 trillion in trades on its platforms every day, said having the vast majority of employees work remotely is a "fundamental game changer."
- And Casey Sullivan reported that law firms are pulling the trigger on pay cuts and layoffs - and they're already rethinking tech, office space, and recruiting for the long term.
And for those looking for help navigating the current market turmoil, here are some highlights from our investing team:
- Bank of America examined the stock market during every recession since 1929 and concluded the recent meltdown is not over. Akin Oyedele broke down its trading strategy for a deeper crash.
- 200-plus money managers pay thousands to see which stocks are on Jim Osman's buy list. He talked to Chris Competiello and identified three he says are set to soar "at least 50%" from their coronavirus-stricken levels.
- RBC polled 185 investors during the worst first quarter in stock-market history. They revealed what they're buying and selling as the coronavirus crisis persists.
- A new survey of 159 pro investors shows experts are looking to buy stocks again. Here's what 9 of them had to say about where they're putting money to work.
Associated Press
President Donald Trump hands a pen to Senate Majority Leader Mitch McConnell of Ky., after signing the coronavirus stimulus relief
How to benefit from the stimulus bill
Our team of reporters focused on entrepreneurs and small businesses has been hard at work this week covering the government's $349 billion relief program.
In related news, Kimberly Leonard got her hands on a leaked document from Senate Democrats that provides clues on how the federal government will allocate $100 billion from the coronavirus stimulus to hospitals.
FBMark Zuckerberg and Priscilla Chan, talking to Gavin Newsom on Facebook Live.
Silicon Valley steps up
While Wall Street has been adjusting to wild market moves while WFH, and small businesses have been poring through the stimulus bill to see a way to survive, big tech has been positioning itself as the solution to some of the challenges we're now faced with.
Stay safe, everyone.
-- Matt