GameStop has ventured into collectibles

Hello and welcome to Alts Cafe

I’m in Jalisco, Mexico this week in support of our Tequila fund that’s closing Friday. I can confirm it’s very hot.

Highlights from the full issue:

• Macro: Powell anticipates monthly decline in inflation
• Real Estate: Colorado home listings rose, and prices fell
• Startups: Web app platform Vercel raised $250 million
• Private Credit: Squarespace will be acquired by Permira
• Crypto: CME Group plans to launch bitcoin trading
• NFTs: FC Barcelona’s NFTs will be at the Moca Museum
• Art: Christie’s evening sales brought in $413 million
• Vintage Autos: RM Sotheby’s had its biggest Monaco auction
• Coins: Two Lincoln cents sold for $31,200 and $9,600
• Farmland: Maryland has conserved 30% of state land
• Luxury: Shares of Cartier owner Richemont climbed 6.3%
• Wine, Tequila, and Spirits: Jim Beam to release oldest bottle
• Film & Music: Profit at Sony surged 34% in the last quarter
• Precious Metals: Silver broke above the key $30 level
• Collectibles: GameStop has ventured into collectibles
• Websites: Permira acquired Squarespace for $6.9 billion

Let’s go.

Wyatt

Macro View

Bullish News

• US inflation ​cooled in April​, with consumer prices rising 0.3% from March, its lowest level in three years.
• The UK economy ​grew by 0.4% in March 2024​, after growing by 0.2% in the previous month.
• Federal Reserve Chair Jerome Powell stated on Tuesday that he anticipates a ​monthly decline in inflation​, returning to the lower levels observed last year.
• China’s factory output ​topped forecasts in April​, growing 6.7% year-on-year.
• Singapore Airlines ​posted a record annual profit​ of $1.99 billion, raising its dividend to 38 Singapore cents per share.
• Goldman Sachs Research predicts AI will ​significantly impact US GDP​ starting in 2027, with a 25% productivity increase observed in early adopters.

Bearish News

• President Biden on Tuesday ​unveiled steep tariffs​ on $18 billion worth of Chinese imports, including electric vehicle batteries, computer chips, and medical products.
• More Americans are ​falling behind on credit card bills​, with 8.9% of balances falling into delinquency.
• Real retail sales declined year-on-year in ​12 out of the last 17 months​.
• Foreign direct investment into China ​fell 56%​ in Q1 2024.
• Momentum models ​slipped 0.1%​ over the past week as fixed income and FX underperformed equities.
• Consumer confidence ​dropped in April​, with 17% reporting poor or very poor financial conditions.
• Over a third of US consumers encountered ​gig economy fraud​, a 21% increase from last year.
• Wolfe Research ​downgraded EPAM Systems​ from Outperform to Peer Perform due to growth concerns.

What are the odds?

Get $25 to play around with using ​this link​.

What are we doing?

​Altea​ Highlights

Live Deals

Tequila I

• I’m in Mexico this week to supervise the filling of the 80 barrels of 100% agave tequila we’ve helped 20 investors buy.
• Those barrels will age three years, at which point we aim to sell.

Art II

• We wired funds to the art broker over the weekend for this lovely Frank Auerbach Charcoal.
• The iconic British artist is set for a surge in popularity over the next few years and trades well below his peers.

Investor Field Trips

We’ve locked in Nashville 🎸 for a music-themed investing adventure to Music City, USA.

Get your boots spit-shined and your guitar tuned.

Est. dates: October 21 – 25

We’ll discount the first few members who make a deposit. Let me know if you’d like to join.

​ALTS 1​ Fund news

This is open for a few more weeks, at which point we’ll begin onboarding new members through our Altea portal. Again, ​let me know​ if you’re interested.

Real Estate

Bullish News

• 27 states have passed laws ​protecting consumers​ from unfair real estate agreements involving future home sale rights for small up-front payments.
• Real estate investment management platform Agora ​closed a $34 million Series B​ funding round.
• A settlement with the National Association of Realtors now requires buyers to ​sign formal contracts​ with agents outlining services and costs.
• In southern Colorado, home listings rose and ​prices fell​, with closed deals dropping 20% in Pueblo and 37% in Fremont.
• Non-bank lenders accounted for ​41% of real estate loans​ in Britain in 2023, up from 19% nine years earlier.

Bearish News

• Zillow revised its forecasts ​downward this month​, now anticipating 0.6% home value growth in 2024 and a 0.9% decline in home sales.
• The Federal Reserve warned of ​rising loan delinquencies​, with office occupancy rates still below pre-pandemic levels.
• Colorado real estate agents reported a reduction in fees from ​2.8% to 2.5%​, resulting in a loss of $1,800 per transaction.
• A Sarasota construction firm owner was imprisoned for ​using homeless people​ to commit $581,808 in real estate fraud.
• The collective brand value of Chinese real estate brands ​plummeted by 30.8%​, with Vanke’s brand value decreasing by 21%.
• Portland’s Inclusionary Housing program ​fell short of its goals​, creating only 566 new affordable apartments since 2017.
• In Washington state, real estate experts said “​sellers are on strike​” due to low inventory.
• The median home price in Santa Clara County ​hit $2 million​ due to low inventory and competition among buyers.

How to invest in real estate right now:

Not a great time to consider a move to the PNW.

Startups

Bullish News

• Baird Capital’s president ​offered startups a glimmer of hope​, citing $300 billion of dry powder in VC and $1 trillion in PE.
• Accel ​raised a $650 million fund​ to back European and Israeli early-stage startups.
• UT Austin’s Seed Fund invested ​$250,000 in NALA Membranes​, a 2018 startup developing chlorine-tolerant water purification membranes. ​
• Boise healthcare software company Switchboard Health landed a ​$6.5 million seed round​ led by FirstTrust Capital.
• Vercel, a platform for developing web applications in the cloud, raised a ​$250 million​ Series E at a $3.25 billion valuation.
• Polymarket, a decentralized prediction market platform, raised a ​$45 million​ Series B led by Peter Thiel’s Founders Fund.
• Israeli data storage startup Weka ​raised $140 million​, attaining a $1.6 billion valuation.

Bearish News

• Coatue Management ​dissolved its stake​ in Apple in Q1 as the company’s shares plunged almost 11%.
• Florida-based startup NightCap has begun ​advocating against copycats​ selling counterfeit products, costing hundreds of thousands in legal fees.
• Ginkgo Bioworks ​received a notice​ from the NYSE that it is not in compliance with continued listing standards.
• Shopify ​filed a lawsuit​ against a Chinese competitor for allegedly creating a copycat version of its storefront template software.
• Voiceover actors ​sued AI startup LOVO​ in a class action lawsuit over alleged voice misappropriation, with some seeing a 50% decline in work.

How to invest in startups right now:

So Angelina Jolie didn’t wish me a happy birthday?

Private Equity and Private Credit

Bullish News

• A study by UC Berkeley found fertility clinics ​improved by 13%​ after PE-backed corporate chains acquired them.
• PE firms have quietly begun ​mortgaging their investment funds​, using net asset value loans to raise new cash.
• The PC industry remains in its “​golden age​” with a high appetite for PC products, according to industry professionals.
• Squarespace ​agreed to be acquired​ by PE firm Permira for $6.6 billion.
• Goldman Sachs has begun planning overseas expansion into PE lending, posting record ​$852 million​ FICC financing revenues in Q1.
• Aflac Global Investments agreed to ​acquire a 40% stake​ in Tree Line Capital Partners.
• Ampersand Capital Partners ​ranked #1 globally​ by HEC Paris-DowJones for growth capital PE performance for the second consecutive year.
• Brookfield Asset Management reported its ​best-ever Q1 fundraising quarter​ during last week’s earnings call.

Bearish News

• PE’s acquisition of vet practices has ​raised services prices​ by 32% from March 2020 to March 2024.
• Fidelity International ​abandoned its direct lending strategy​ in Europe less than a year after launching.
• PE healthcare dealmaking ​stalled in Q1 2024​, dropping 20% year-over-year due to bid-ask gaps and regulatory challenges.
• Ares Management’s Q1 2024 revenue and earnings ​missed expectations​, with revenue down 13%.
• A Boston College study found ​donor-advised funds fail charities​, with $300 billion sitting in DAFs from 2014 to 2019 instead of aiding them.
• BNY Mellon Alcentra Global Multi-Strategy Credit Fund’s quarterly tender offer was ​oversubscribed​ for up to 2.5% of outstanding shares.

How to invest in PE and Private Credit right now:

I love my cat, but PE-funded vets will test exactly how much—in dollars.

Crypto

Bullish News

• Bitcoin leaped ​back near $66,000​ after the April CPI report.
• Wisconsin’s pension fund bought over ​$160 million worth of shares​ in two bitcoin ETFs earlier this year.
• Crypto wallet recovery requests surged as Bitcoin hit a record high of $73,803.25 in March, with some firms reporting a ​334% increase​.
• CME Group, the world’s largest futures exchange, has ​planned to launch bitcoin trading​, overtaking Binance.
• Zest Protocol, a ​bitcoin lending startup with just six employees​, secured $3.5 million in a funding round.
• Intensity Labs ​raised $6.9 million in a seed funding round​ at a $69 million token valuation.
• Chainlink’s native token LINK ​gained more than 7%​ as DTCC completed a pilot project with Chainlink and major US financial institutions.

Bearish News

• Two brothers ​stole $25 million in Ethereum​ in just 12 seconds.
• Arkansas passed two laws ​regulating cryptocurrency mining​ after months of outcry from residents facing noise from nearby mines.
• Hong Kong authorities warned about a crypto scam using ​deepfake videos​ of Elon Musk to trick investors.
• UN experts say North Korea ​laundered $147.5 million​ in stolen crypto through Tornado Cash in March.
• The IRS proposed regulations requiring brokers to ​report cryptocurrency transactions​ in 2025, with fines up to $100,000 for non-compliance.
• President Biden ordered a ​Chinese-tied crypto mining facility​ near a US nuclear missile base to halt operations, citing national security risks.

How to invest in Crypto right now:

Chinese crypto mining next door to a nuclear missile base. What’s the worst that could happen?

NFTs

Bullish News

• Solana has become the ​top blockchain for NFTs​, with transactions costing less than a cent and using less energy than a Google search.
• Telefónica’s NFT Marketplace ​added collections from Harvverse​, supporting renewable energy.
• FC Barcelona’s NFTs ​’In a Way, Immortal’ and ‘Empowerment’​ will join Moca Museum’s Amsterdam exhibit.
• Solo artist Christian O’Connor is releasing his new album with ​unique NFTs for each song​.
• Refik Anadol and digital art ​were welcomed into MoMA​, with the museum receiving over $300,000 from his NFT sales.
• CryptoPunks announced a new 500-piece ​digital avatar collection​, hand-curated by artist Nina Chanel Abney.

Bearish News

• NFT sales ​dropped by 11.16%​ this past week, with Bitcoin-based NFTs falling by 14.65% and Ethereum NFTs down by 11.7%.
• A report revealed that 95% of all NFT projects, totaling over 69,000 collections, ​held zero market value​,
• The NFT market hit a recession, with a ​97% plunge​ in trading volume since 2021.
• Dolce & Gabbana USA was ​sued by a customer​ who claims he suffered a 97% loss on his $6,000 investment in NFTs.
• Pink Drainer, a notorious crypto wallet-draining service, ​retired after stealing​ over $85 million from 21,000+ people in the past year.

How to invest in NFTs right now:

Who’s got tickets to the Moca?

Artwork

Bullish News

• Christie’s evening sales ​brought in $413 million​, with Georgia O’Keeffe’s Red Poppy (1928) selling for $16.5 million.
• The Kaleidoscope Artisan Collective, a new hub for local artwork featuring 31 artists, ​opened in Myrtle Beach​.
• Sotheby’s The Now and contemporary art evening sales ​generated $227.9 million​, setting a new auction record for Faith Ringgold at $3.2 million.
• Phillips’s evening sale of Modern and contemporary art ​sold $86.2 million​ worth of art, with Jean-Michel Basquiat’s Untitled selling for $46.4 million.

Bearish News

• Christie’s has ​experienced a slumped market​, with estimates down to $1.2-1.8 billion from $2.8 billion in 2022.
• Global auction sales for Modern and contemporary African art ​contracted 8.4% in 2023​, as major houses saw a 16% drop.
• Vatican Museum staff have started a ​labor dispute​ over workplace conditions, citing unfair pay and insufficient safety provisions.
• Latin America faces a ​growing problem with stolen and faked antiquities​ as technology aids looters.
• At Christie’s 20th-century evening sale, a Cornell ​failed to meet its $700,000 estimate​.

How to invest in Artwork right now:

Working at the Vatican sounds hellish.

Vintage Autos

Bullish News

• Monaco Car Auctions’ upcoming L’AstaRossa sale on June 8th features ​a trio of 1960s V12 Ferraris​.
• RM Sotheby’s ​celebrated its biggest-ever Monaco auction​ last weekend, grossing over €40 million
• The used car market, valued at $1.67 trillion in 2023, ​is predicted to reach $2.70 trillion by 2031​.
• A rare 1996 BMW Alpina B3 3.6 Touring, one of only 89 built, ​is up for auction​ on Bring a Trailer.
• The DVLA is considering major changes to ​classic car restoration rules​ to make it easier for owners to modify historic vehicles.

Bearish News

• Mexico City’s ‘Hoy No Circula’ program has ​restricted vehicle circulation​, with foreign vehicles banned one day per week and weekday mornings without an emissions sticker.
• A 77-year-old Chevrolet Corvette driver ​suffered multiple crush injuries​ after rear-ending a semi-truck.
• Formula 1 driver Lando Norris’ £1.5 million vintage Lamborghini ​broke down in Monaco​, requiring fans to push-start the car.

How to invest in Vintage Autos right now:

Everybody needs a push sometimes, even a £1.5 million vintage Lamborghini.

Rare Coins

Bullish News

• Demand for gold and silver coins is surging, with Costco ​quickly selling out​ of Canadian .9999 fine gold coins.
• The ​L.E. Bruun Collection​, the “most valuable collection of world coins to ever come to market,” will be auctioned this fall.
• Heritage Auctions’ Central States events ​topped $52 million in total sales​.
• PCGS President Brett Charville ​acquired Toledo Coin Exchange​, Northwest Ohio’s largest rare coin dealership.
• Indiana now exempts IRA-qualified coins, US legal tender, and foreign legal tender acquired at face value ​from sales tax​.
• Two Lincoln cents graded MS-68 red by PCGS ​sold for $31,200 and $9,600​ at Stack’s Bowers’ March Rarities Night.
• Danish butter tycoon Lars Emil Bruun’s coin collection, safeguarded for a century per his will, could fetch up to ​$72 million at auction​.

Bearish News

• A couple allegedly ​stole over $100,000​ in rare coins through fraudulent business practices in York County, Pennsylvania.
• Approximately 95% of a ​Minnesota-based dealer’s stock​ was stolen after the Central States Numismatic Society show.
• The British Royal Mint announced plans to cease producing ​coins for foreign countries​ by 2025 after nearly 700 years.

How to invest in Rare Coins right now:

Butter tycoon. Now that’s a job.

Farmland

Bullish News

• Maryland ​achieved its goal​ of conserving 30% of state land six years ahead of schedule.
• The House farm bill was introduced last Monday to reform the Agriculture Foreign Investment Disclosure Act to better track ​foreign purchases of US farmland​.
• The USDA announced $22.3 million in funding for ​2501 grants​ this year to support socially disadvantaged farmers.
• Peoples Company acquired ​The Atkins Group’s 14,000-acre Farmland Management​ portfolio in the Champaign area.
• Onondaga County announced ​grants of up to $15,000​ for 16 local farms to improve agritourism and offset project costs.
• The Michigan Department of Agriculture ​awarded nearly $55,000 in grants​ for horticulture research.
• The agricultural sector contributed an estimated ​€219.5 billion​ towards the EU’s overall GDP in 2023.
• Pennsylvania Agriculture Secretary Russell Redding announced ​a $1.5 million grant​ for conservation research.

Bearish News

• Around ​11% of large farmland trees​ in India disappeared between 2010 and 2018, with over 5 million more vanishing from 2018-2022.
• General Mills Inc. stock ​fell 0.08%​ last Monday, underperforming compared to competitors.
• A report revealed the Tyson Foods plant in Nebraska released over ​60 million pounds​ of pollutants into waterways between 2018 and 2022.
• The geomagnetic storm has disrupted ​GPS-guided precision agriculture technology​, forcing farmers to pause planting.
• Lehigh Valley residents continued their fight against ​sewage sludge​ plans on a preserved farm, causing project delays.

How to invest in Farmland right now:

Missing trees? Someone check if David Blaine’s in India.

Luxury Goods

Bullish News

• The global luxury goods market is estimated to ​grow at a CAGR of +7%​ during the forecast period.
• Richemont announced a ​management rejig​, promoting Nicolas Bos to group CEO, leading to a 6% rise in shares.
• Chinese tourists are ​flocking to Japan’s luxury vintage stores​ as the pre-owned luxury goods market is tipped to reach $78.33 billion by 2031.
• Afreximbank approved a ​$30 million financing package​ for Silversands Hotel in Grenada to enhance its luxury offerings.
• Shares of Cartier owner Richemont ​climbed 6.3%​ after reporting record full-year sales of $5.21 billion.

Bearish News

• Burberry’s profits ​slumped by 40%​ due to a slowdown in demand for luxury goods, with global sales falling 8%.
• Luxury apparel chain Ted Baker Canada ​filed for Chapter 15 bankruptcy​ to liquidate and close all 56 of its North American stores.
• Shares of Tapestry Inc. ​sank 0.35%​ Thursday, snapping a three-day winning streak.
• The “​Made in Italy​” label has lost its luster as the global luxury market demand returns to historic growth rates of around 5%.

How to invest in Luxury Goods right now:

Not a great time to be Italian, at least in the world of luxury.

Wine, Tequila, and other Spirits

Bullish News

• The US wine industry ​surpassed $107 billion in sales​ in 2023, a 46% increase since 2018.
• Mississippi lawmakers approved the construction of a new ​$95 million​ Alcohol Beverage Control warehouse.
• Gallo ​entered the beer category​ and has grown from 130,000 to nearly one million cases sold in the last 5 years.
• Montucky ​increased dollar sales​ by 7% and volume by 4.5% in 2023, outpacing the total beer category.
• Virginia’s distillery industry generated an ​economic impact of over $1.1 billion​ in 2022.
• FEW Spirits’ distillery in Evanston, IL ​underwent upgrades​ to produce for a global market after its acquisition by Heaven Hill.
• Jim Beam announced plans to release its ​oldest whiskey ever bottled​ as part of the 2024 Bardstown Collection.

Bearish News

• The no and low-alcohol beverage market’s ​6% CAGR​ forecast for 2023-2027 threatens traditional spirits sales.
• A New York man was arrested for over ​$10,000 in fraudulent purchases​ at two Delaware liquor stores using fake credit cards.
• Spirits sales in Great Britain’s on-trade ​fell 19%​ in the week to May 4 compared to last year.
• The 54-year-old Monticello Vineyards in Napa ​could be sold​ due to a feud among the founding family’s seven siblings.

How to invest in Wine and Spirits right now:

I think I found the plot for Succession, season 5.

Last chance to get in on our ​tequila SPV​. ​Let me know​ if you’re interested.

Music and Film

Bullish News

• Taylor Swift’s Eras Tour is predicted to ​provide a £997 million boost​ to the UK economy.
• Universal Music Group ​held the largest market share​ of 31.8% in both physical and digital music in 2023.
• Logical Pictures launched a new Africa venture to ​expand its global footprint​ into the fast-growing African market.
• MK2 Films ​acquired global rights​ to three films, including the previously unreleased “The Friends” (1994).
• Pro Music Rights, received a final judgment of ​$114,081.30​, solidifying the enforceability of its licensing agreements.
• Profit at Sony ​surged 34% in the last quarter​ on strong sales of its video games, music, and movies.
• “Kingdom of the Planet of the Apes” raised ​$56.5 million at the box office​, the third highest of the year.
• Tame Impala’s Kevin Parker ​sold his entire music catalog​ to Sony Music Publishing.

Bearish News

• The Mechanical Licensing Collective ​sued Spotify​ over its bundled music-audiobooks plans.
• Jason Cloth ​stepped down​ as co-head of C2 Motion Picture Group after a Florida jury found he defrauded an investor out of millions.
• The Cannes film festival ​faced strike disruption​ over the French government’s treatment of seasonal film festival staff.
• Paramount Global shares ​fell more than 7%​ as the likelihood of Sony Pictures’ bid for the full company faded.
• Spotify was hit with a ​cease-and-desist letter​ from the NMPA over its use of lyrics, music videos, podcasts, and remix features without proper licensing.
• Sony Pictures Entertainment’s full-year operating income ​fell to $808 million​.

How to invest in Music and Film right now:

Spotify is getting its comeuppance.

Metals and Gems

Bullish News

• Gold prices are ​on a tear this year​, with Saxo Bank strategists seeing gold testing $2,400.
• The LME saw an ​all-time record month​ in April as investors returned to base metals, with nickel volumes doubling year-on-year.
• Silver broke above ​the key $30 level​, reaching its highest since 2013.
• China’s stimulus measures ​lifted gold prices​, with the metal up 2% for the week, closing at an all-time high.
• The jewelry market in India is set to grow by ​$21.54 billion​ from 2023-2027.
• The World Bank projected precious metals prices to rise ​8% in 2024​.
• The “​Argyle Phoenix​” red diamond broke records at Phillips Geneva, selling for more than $4 million.

Bearish News

• Victims lost over $55 million in ​precious metal scams​ in the last 8 months of 2023.
• The platinum market faces a ​second consecutive annual deficit​ in 2024, with supply from mines down 2%.

How to invest in Metals and Gems right now:

Grab your pickaxe, it’s another gold rush.

Collectibles

Bullish News

• eBay and PSA ​closed a series of transactions​ to launch a seamless, end-to-end experience for trading card collectors this summer.
• A one-of-a-kind, signed Michael Jordan 2003 ultimate collection card ​could sell for $3-5 million​ at Goldin Auctions.
• McFarlane Toys signed a licensing agreement with UFC to create a ​powerhouse line​ of collectibles.
• GameStop has ventured into the ​collectibles market​ by buying and selling single Pokémon cards.
• Purdue has purchased panels from the ​2024 Final Four court​ for various collectibles.
• ​Shohei Ohtani bobbleheads​ given away at a Dodgers game are fetching prices of up to $1,500 on the resale market.

Bearish News

• A former Augusta National employee ​pleaded guilty to stealing millions​ in memorabilia, including three Masters Green Jackets.
• Law enforcement has sought public help to ​identify suspects​ who removed artifacts from a closed area at Canyonlands National Park.

How to invest in Collectibles right now:

I knew my collection was missing something: a chunk of a basketball court.

Websites and Domains

Bullish News

• Permira ​acquired Squarespace for $6.9 billion​ in an all-cash deal, paying a 30% premium to the unaffected share price.
• Four letter domains ​led expired domain sales​, with Newfold Digital’s platforms selling 58 domains for a total of $247,000.
• The US Secret Service seized the domain OKEX-NFT.net used in a cryptocurrency “​pig butchering​” scheme.
• Salesforce.com acquired the premium ​111.org domain​, likely for its “Pledge 1% movement.”
• Dynadot auctioned registry reserved ​.gg domains​, with sports.gg selling for $96,000 and games.gg for $90,000.
• The US Patent Office granted Unstoppable Domains a new patent covering aspects of ​blockchain domain names​.
• Palo Alto Networks and IBM announced a ​major cybersecurity partnership​.

Bearish News

• A fraud ring operating tens of thousands of fake webshops ​stole $50 million​ and credit card details from 850,000 victims.
• 38% of webpages that existed in 2013 are ​no longer accessible​ a decade later, and 54% of Wikipedia pages contain at least one broken link.
• Canonical Software, the Ubuntu distributor, ​tried to reverse hijack​ the lubuntu.net domain name but was found guilty.
• Google’s AI search shift ​sparks advertiser fears​ about declining web traffic, with about 25% of traffic potentially negatively affected.
• The FBI seized control of the BreachForums website, a notorious data leak forum, ​for the second time​ in 12 months.
• Arizona is ​suing Amazon​ over its intentionally confusing Prime cancellation process.

How to invest in Websites and Domains right now:

What’s confusing about scouring 6 articles, watching an 8-minute YouTube video, and sending 3+ emails to a customer service rep?

Cheers,

Wyatt

Disclosures

• We hold BTC, ETH, and a couple Star Wars Action figures in our ​ALTS 1 Fund​.
• There are a couple of affiliate links above. If you click them, we may get a couple of bucks.