Tausi Insider

A man looks at a Bloomberg terminal. BEN FATHERS/AFP/Getty Images David McLean is the Owner of McLean Asset Management and Manager of the ROMC Fund . Active investment funds have been overcharging investors for decades. Nowhere is this more prominent than in the alternative fund category, colloquially known as hedge funds. Investment management used to be a profession. Today, it’s a business. Traditionally, fund management companies offered but one fund, managed for long-term maximum real return after taxes, in order to increase purchasing power for savers. Today, a typical manager offers hundreds of funds. And as what used to be a craft devolves into a numbers game, the whole industry has weakened. Assets in the hedge-fund industry have fallen by nearly US$220-billion since the end of 2021, with global economic conditions leading to poor performance, and investors redeeming funds in droves as a result. Two of the world’s richest, most successful investment managers, Warren Buffett a...

Canada’s Bombardier Inc BBD-B-T said on Tuesday that NetJets, operator of the world’s largest fleet of private jets, will buy four Global 8000 business jets from the plane maker in a deal valued at $312-million. The Berkshire Hathaway-owned private aircraft firm will be the fleet launch customer for the Global 8000s, and operate 24 of the new line by upgrading its entire in-service Global 7500 fleet. Montreal-based Bombardier launched the Global 8000, its new long-range business jet, in May this year to compete better at a time when private jet operators are expanding their fleet to meet growing demand from the ultra-rich. “With inventory sold out through 2023 in the U.S., we are continuing to invest in further expansion for prospective owners in North America and across the globe,” said Patrick Gallagher, NetJets’ president of sales, marketing, and service. The order for the four aircraft is valued based on 2022 list prices, Bombardier said. https://www.tausiinsider.com/bombard...

Volkswagen VWAGY has begun searching for a site for the German carmaker’s first battery-cell factory in North America, its CEO announced on Thursday. Confirming an earlier Reuters story, Volkswagen CEO Oliver Blume and Canadian industry minister Francois-Philippe Champagne signed an addendum to their existing memorandum of understanding from August, agreeing to identify suitable sites for the planned cell plant. Blume said that battery technology was key for the company’s strategy and that it was committed to investing in North America. “Canada is one logical option for the construction of a gigafactory in the region of North America,” he said, adding it offered ideal economic conditions and high sustainability standards. Such a plant would be Volkswagen’s first gigafactory outside Europe. Volkswagen’s battery subsidiary Powerco also announced it was extending a deal to co-operate with Belgium’s Umicore on shipping cathode material to Canada. The German auto giant said it was a long-...

Chrysler parent Stellantis STLA-N said Tuesday it is recalling 1.4 million pickup trucks worldwide because tailgates may not latch properly and could open while driving. The automaker said the recall covers various 2019 through 2022 model year Ram 1500, 2500, and 3500 pickup trucks. The company said it has no reports of crashes or injuries but more than 800 warranty claims and other reports potentially related to the issue. Dealers will inspect the tailgate striker alignment to the box latch and adjust if necessary, the company said. The recall includes more than 1.23 million vehicles in the United States, 120,000 in Canada, 26,000 in Mexico and about 27,000 outside North America. Owner notification letters will be mailed in late January. The U.S. National Highway Traffic Safety Administration said an unintended tailgate opening while driving could result in a loss of unsecured cargo, potentially creating a road hazard and increasing the risk of a crash. The automaker opened an inter...

Ontario Teachers’ Pension Plan Board has appointed Romeo Leemrijse to lead its equities department, choosing an executive with a 16-year track record within the investor’s own ranks. Mr. Leemrijse will take over as executive managing director, equities on Jan. 1, leading investments in private and public equities. He will be based in Toronto and report to chief investment officer Ziad Hindo. He succeeds Karen Frank, the former equities head who was based in London, England, and who left Teachers last month. She joined Teachers two years ago from a career in private banking at Barclays Bank PLC and investment banking at Goldman Sachs Group, Inc. Equities accounted for $78.5-billion, or about 32 per cent, of Teachers’ $242.5-billion in net assets as of June 30. The lion’s share of that is in private equity, which accounted for $55.3-billion in assets. Equities assets were down from $82.3-billion at the end of 2021. Most recently, Mr. Leemrijse has overseen direct investing in North Ame...

Toyota Motor Corp TOYOF reported on Monday a 1.5% rise in November global vehicle output, reaching a new record of 833,104. Domestic production slid 3.3% to 266,174 vehicles, while overseas output rose 3.8% to an all-time high of 566,930 for the month. Global sales and production in November exceeded last year’s levels due to solid demand, particularly in North America, and a recovery in parts supplies that had been impacted by COVID-19 slowdowns, Toyota said. The automaker reported earlier this month it expected to produce 700,000 vehicles in January and held to a reduced goal of 9.2 million in the year through March. Toyota had previously expected to make 9.7 million autos this fiscal year, but was forced to lower the target in November as it struggles with rising materials costs and a shortage of semiconductors. That’s still ahead of last year’s production of about 8.6 million units. https://www.tausiinsider.com/toyotas-november-global-vehicle-production-rises-1-5-to-record-8...

U.S. funding for clean energy projects will help energy pipeline operator Kinder Morgan KMI-N accelerate its investments in renewable natural gas and carbon sequestration, executives said on Wednesday. The $430 billion Inflation Reduction Act (IRA) signed into law last September expanded tax credits for industrial projects that capture, reuse or permanently store carbon dioxide, a gas that contributes to climate change. The funding “accelerates growth opportunities” in renewable natural gas (RNG), renewable diesel, hydrogen as well as carbon capture and storage (CCS), according to a presentation by Kinder Morgan, the largest operator of carbon dioxide pipelines in North America. Opportunities to speed up development targets for CCS projects are tied to the increase in credits – to $85 per ton from $50 per ton – for carbon sequestration. The law also provides $60 per ton for carbon used for enhanced oil recovery, used in Kinder Morgan’s oil business. Earnings before depreciation and a...

Chrysler parent Stellantis STLA-N said Tuesday it is recalling 1.4 million pickup trucks worldwide because tailgates may not latch properly and could open while driving. The automaker said the recall covers various 2019 through 2022 model year Ram 1500, 2500, and 3500 pickup trucks. The company said it has no reports of crashes or injuries but more than 800 warranty claims and other reports potentially related to the issue. Dealers will inspect the tailgate striker alignment to the box latch and adjust if necessary, the company said. The recall includes more than 1.23 million vehicles in the United States, 120,000 in Canada, 26,000 in Mexico and about 27,000 outside North America. Owner notification letters will be mailed in late January. The U.S. National Highway Traffic Safety Administration said an unintended tailgate opening while driving could result in a loss of unsecured cargo, potentially creating a road hazard and increasing the risk of a crash. The automaker opened an inter...