Core Insights - D.E. Shaw, a prominent hedge fund manager, has analyzed the duration required for concentrated U.S. stock markets to revert to normal conditions [1] Group 1 - The analysis focuses on the current state of U.S. stock markets, which are experiencing significant concentration [1] - D.E. Shaw's calculations provide insights into market recovery timelines, indicating potential future trends for investors [1]

Core Insights - Wall Street is significantly investing in Rigetti Computing, with major asset managers like Vanguard, BlackRock, and State Street holding substantial shares, indicating a strong interest in the company [1][2] - Vanguard's investment in Rigetti, valued at approximately $577 million, is primarily due to the stock's inclusion in broad market indexes rather than a reflection of the fund managers' strong belief in the company's potential [2][6] - The surge in Rigetti's stock price by over 1,700% in 2025 led to an increase in its weighting in various indexes, which in turn inflated the value of institutional holdings [3] Institutional Investment Dynamics - Active hedge funds, such as D.E. Shaw, also hold positions in Rigetti, but these are driven by algorithmic trading strategies rather than long-term convictions about the company's future [4] - Many funds that typically invest for the medium to long term have minimal exposure to Rigetti, with positions constituting less than 0.01% of their portfolios, suggesting a lack of confidence in the stock [5] Misinterpretation of Institutional Ownership - The presence of large institutional investors like Vanguard on Rigetti's shareholder list is often misinterpreted as a validation of the company's prospects, but it is largely a mechanical outcome of index inclusion rather than an endorsement from "smart money" [6]

Core Insights - Anthropic is nearing the completion of a significant funding round, aiming to raise over $20 billion, marking one of the largest startup funding rounds in history [1] Company Overview - The company is expanding its roster of backers, indicating strong investor interest and confidence in its future prospects [1]

Anthropic is nearing the completion of a deal to raise more than $20 billion in a funding round co-led by investors including Peter Thiel’s Founders Fund, D.E. Shaw and Dragoneer, according to sources https://t.co/UCkNlt8v5d ...

Exclusive: Hedge fund D.E. Shaw is planning to push for a board shake-up and other big changes at CoStar Group, a major commercial real-estate information provider https://t.co/IBgvkWlfvT ...

Core Viewpoint - Hedge fund D.E. Shaw is advocating for significant changes at CoStar Group, including a board shake-up, due to concerns over the company's underperformance and its investment strategy [1][3]. Group 1: Company Performance and Strategy - D.E. Shaw attributes CoStar's share underperformance to its "high-risk, money-losing" investment in Homes.com, which aggregates home listings [2]. - CoStar's market value is approximately $22 billion, with shares down over 23% year-to-date, partly due to investor concerns about overspending and increased competition [6]. - D.E. Shaw criticizes CoStar's current leadership, particularly Andrew Florance, for being tied to the unsuccessful Homes.com strategy and claims the board is failing in its oversight responsibilities [5]. Group 2: Proposed Changes - D.E. Shaw is calling for CoStar to monetize Homes.com, refocus on its core business, initiate stock buybacks, and restructure executive compensation [5]. - While D.E. Shaw has not explicitly stated plans for a proxy fight, it has left the possibility open in its communications [5]. Group 3: Company Background - CoStar, founded in the 1980s by Andrew Florance, has established itself as a leading provider of commercial real estate data, expanding its offerings over the years to include various property types [4]. - The company's recent expansion into the single-family housing market through Homes.com has been met with challenges, particularly from established competitors like Zillow Group and Realtor.com [5].

Core Viewpoint - CoStar is currently under pressure from Daniel Loeb's Third Point, indicating potential challenges for the company in maintaining its market position and performance [1] Group 1 - CoStar is facing scrutiny from Third Point, which may impact its strategic decisions and operational focus [1]

Core Viewpoint - CoStar Group is committed to prioritizing profitable growth and enhancing long-term value for shareholders, responding to feedback from major shareholders, including Third Point, by implementing a series of strategic initiatives aimed at improving profitability and transparency [2][3]. Strategic Initiatives - The Board has recommended a plan to accelerate profitability for Homes.com, invest in core platforms, return capital to shareholders, align executive compensation with shareholder interests, and enhance investor transparency [3][5]. - A Capital Allocation Committee has been formed to review the company's capital structure and investment priorities, including significant investments in major brands like CoStar and Apartments.com [5]. - The company plans to moderate investment in Homes.com, reducing net investment by $300 million in 2026 and over $100 million annually thereafter, aiming for breakeven profitability by the end of 2029 [5][6]. Financial Performance and Projections - CoStar Group expects revenue of $3.8 billion in 2026, an 18% increase from 2025, with adjusted EBITDA projected to rise 83% to $770 million, achieving a margin of 20% compared to 13% in 2025 [8]. - The company anticipates entering a new phase of accelerated, profitable growth, with a long-term goal of achieving adjusted EBITDA of $2.3 billion and a margin of 35% by 2030 [9]. Market Position and Growth - Homes.com is showing strong momentum, with a 337% increase in subscribers since Q1 2024, and is expected to scale rapidly while lowering capital intensity [6]. - The company has a proven track record of successful acquisitions, having acquired over 40 businesses for approximately $7.3 billion, generating internal rates of return (IRRs) between 17% and 39% [7]. Shareholder Returns - CoStar Group has delivered approximately 290% total shareholder returns over the last 10 years, significantly outperforming the median of its real estate marketplace peers [14]. - The company is accelerating its $500 million share repurchase program initiated in 2025 and has authorized a new $1.5 billion repurchase program in January 2026 [5].

Big-name hedge funds mostly had strong years, led by managers such as Michael Gelband's ExodusPoint and D.E. Shaw. It was a choppy year for funds, which battled markets strained by geopolitical stress from tariffs and international conflicts. Most funds still trailed the S&P 500's 16.4% return on the year, however. Artificial intelligence spikes and sell-offs, market-rattling tariffs from the world's largest economy, mysterious quant losses — hedge funds battled a lot in 2025. When the dust settle ...

Core Insights - D.E. Shaw's two flagship funds outperformed the S&P 500 index in 2025, indicating strong performance in the hedge fund sector [1] Group 1 - The performance of D.E. Shaw's funds reflects a broader trend of strength observed across hedge funds [1]