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Diddy's bid to avoid prison: He'll become a domestic abuse counselor

Sean "Diddy" Combs.
Sean "Diddy" Combs' criminal trial has been unfolding in Manhattan federal court.

ANGELA WEISS/AFP via Getty Images

  • In a bid to avoid prison time, Sean "Diddy" Combs plans to propose his hopes to counsel abusers.
  • Combs was convicted of two prostitution-related counts and faces up to 20 years in prison.
  • The hip-hop mogul hopes to be an anti-domestic violence advocate, his lawyer told Business Insider.

Sean "Diddy" Combs' redemption plan includes his aspirations to become an anti-domestic violence advocate, one of his defense lawyers told Business Insider.

Combs, who was found guilty last month of two counts of transportation to engage in prostitution, plans to cite his hopes to counsel other domestic abusers in a bid to avoid prison.

"That's something that he actively wants to pursue in the future," defense lawyer Alexandra Shapiro said in an interview.

Combs wants to work with domestic violence programs "to help in whatever ways he can to kind of encourage other people not to do this and really to help in positive ways in the future," said Shapiro.

"The idea is that he would work with programs and be able to go in and talk to people, talk to youth, talk to others about the issue in a proactive way and be an advocate for this," Shapiro said. "And sometimes, people like him can be the best spokesperson to try to help."

Shapiro said that Combs' legal team plans to include these arguments in sentencing-related court filings to the Manhattan judge overseeing his criminal case. She said Combs will request a sentence of time-served β€” meaning that the time he has spent in jail awaiting trial and since would be all of the time he spends behind bars.

Combs has been locked up at a notorious Brooklyn jail since his arrest and indictment nearly one year ago. The Bad Boy Records founder has been denied bail five times, with the latest time being this week.

Though Combs skirted a possible life sentence in prison when the Manhattan federal jury cleared him of the more serious charges of racketeering conspiracy and sex trafficking at his trial, he still faces up to 20 years behind bars.

The two prostitution-related counts Combs was convicted of are Mann Act charges, and each count carries a maximum sentence of 10 years.

Shapiro and other legal experts who are not involved in the case expect any sentence to be much lower than that.

"We're hopeful that the judge is going to consider these arguments that we're going to make about Sean's future, his redemption," Shapiro said. While Combs "has had struggles in the past with the domestic violence problem," he's accomplished a "tremendous amount," she said.

"He's a self-made person who's done so much," Shapiro said of the 55-year-old businessman and rapper who was once worth close to a billion dollars. "And we're hopeful that the judge will look at the whole person and consider the impact he could have in the future, the positive impact, and give him the benefit of the doubt."

At Combs' two-month trial, his defense attorneys painted him as a "complicated" and "flawed" man with a violent side, arguing that domestic violence is not sex trafficking.

The music tycoon's violent side was on full display at the trial where several women, including Combs' ex-girlfriend R&B singer Cassie Ventura, accused Combs of physical or sexual violence in, at times, emotionally-charged testimony.

Combs' jury was also shown the infamous hotel surveillance video where he was seen kicking and dragging Ventura in a Los Angeles hallway. Graphic footage of "freak off" sex encounters were played for the jury, but withheld from the public and media.

A court sketch depicts Sean "Diddy" Combs facing singer and ex-girlfriend Cassie Ventura, the star prosecution witness at his racketeering and sex-trafficking trial in Manhattan.
Sean "Diddy" Combs faces singer and ex-girlfriend Cassie Ventura, the star prosecution witness, at his racketeering and sex-trafficking trial in Manhattan.

Jane Rosenberg/REUTERS

Combs' prosecution was 'overcharged and unfair,' lawyer says

Shapiro told Business Insider she believes the entire prosecution of Combs was "overcharged and unfair," adding that the Mann Act is historically never used in a situation like this.

"The history of the statute is that for basically like 75 years, the government has focused on prosecuting people with a commercial interest in a prostitution business, people who are engaged in exploiting vulnerable women and making money off them," said Shapiro. "This is night and day from that."

"We're talking about someone who's, at worst, a customer," Shapiro said of Combs, adding that the male escorts who prosecutors alleged Combs arranged to cross state lines for sex were "people who voluntarily chose to be commercial sex workers."

"They're not vulnerable, they're not exploited, they're American citizens. They could do whatever they want with their career," the defense attorney said.

These points, Shapiro said, will be part of the arguments that Combs' defense team plans to make to US District Judge Arun Subramanian, who will decide Combs' sentence at a hearing scheduled for October 3.

A spokesperson for the US Attorney's Office in Manhattan declined to comment.

"We're also going to be talking about some of the things that Sean has already started to do to get himself on a path to redemption, in terms of overcoming his drug addiction, working on counseling with regard to the domestic violence problem that he had in the past, and a lot of the things that he would like to do in the future," Shapiro said.

If all else fails, Combs is apparently hoping for a pardon from President Donald Trump.

Shapiro confirmed to Business Insider that members of Combs' inner circle have reached out to the Trump administration about a possible pardon.

Trump, however, recently signaled that a pardon for Combs was unlikely.

Read the original article on Business Insider

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Quant hedge funds clawed back some July losses after a brutal summer

FILE - In this Aug. 12, 2019, photo specialist Peter Mazza works at his post on the floor of the New York Stock Exchange. Stocks of companies that do lots of business with China are obvious targets to sell when trade worries rise, and they’ve lagged sharply behind the rest of the market whenever President Donald Trump sends out a tariff tweet. But investors are also looking way beyond these first-order effects, as they pick out which stocks look most vulnerable to the trade war. (AP Photo/Richard Drew, File)
FILE - In this Aug. 12, 2019, photo specialist Peter Mazza works at his post on the floor of the New York Stock Exchange. Stocks of companies that do lots of business with China are obvious targets to sell when trade worries rise, and they’ve lagged sharply behind the rest of the market whenever President Donald Trump sends out a tariff tweet. But investors are also looking way beyond these first-order effects, as they pick out which stocks look most vulnerable to the trade war. (AP Photo/Richard Drew, File)

Associated Press

  • Quant funds were stung by a weekslong drawdown starting in June.
  • Funds run by Qube, Man Group, and Engineers Gate lost money.
  • The last week of July was a turning point, though, as funds recovered some losses.

Quant hedge funds might have finally seen the light at the end of the tunnel.

After weeks of minor losses that one fund executive described as a "long, slow bleed," systematic funds ended July with a strong week, according to a note sent by Morgan Stanley to clients after trading last Thursday.

The note stated that July's final week clawed back roughly 30% of quant losses for the month, "softening the blow for what's otherwise been a strong year." A note from Goldman Sachs' prime brokerage unit said stock-picking quants ended July down 2%, bringing the average fund's annual return to less than 10%.

This figure still bests the average hedge fund and the S&P 500 over the same timeframe, but the summer slowdown put the brakes on what had been shaping up to be a great year.

At London-based Qube Research & Technologies, the fast-growing quant firm fell 4.5% in its flagship fund in July, a person close to the firm told Business Insider, clawing back some losses in the last week of July. The fund is still up more than 13% for the year.

Engineers Gate, the $4 billion manager, ended May up 12%, but lost more than 4% in July, a person close to the firm said. Its 2025 returns now sit at 7.1% through July after a strong close to the month.

Man Group's multistrategy quant strategy, AHL Dimension, lost more than 3% in July, the firm's website shows. The strategy is down close to 9% on the year. Walleye's quant group was the worst performer of the firm's four strategies in July, the firm told investors in a recent update, but was still positive thanks to Asian strategies offsetting losses in the US.

The managers declined to comment.

Since the start of June, a combination of factors, including a momentum sell-off and crowded trades, have stung quant managers. Still, many in the industry were anticipating a significant bounce-back once things reverted.

"We think strong hands should be levering up into this headwind," a mid-July note from former Bridgewater investment committee member and Dark Forest Technologies founder Jacob Kline read.

Read the original article on Business Insider

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TeaOnHer, a rival Tea app for men, is leaking users’ personal data and driver’s licenses

The newly launched app, now trending on Apple's App Store, contains at least one major security flaw that exposes the private information of its users, including their uploaded selfies and government-issued IDs.
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Microsoft is considering a stricter RTO policy

Satya Nadella, CEO of Microsoft.
Satya Nadella, CEO of Microsoft, speaks on stage at the Build developer conference.

Jason Redmond / AFP/ Getty Images

Microsoft is considering a stricter policy on office attendance, and the software giant could implement this as soon as January for some employees, according to people with knowledge of the plans.

Implementation dates could vary across Microsoft's offices, but the company is considering requiring employees at its Redmond, Washington, headquarters to work from the office more often starting in January, the people told Business Insider.

The company is still finalizing the details and had been planning to make an announcement as soon as September, the people added. They asked not to be identified discussing private matters.

Microsoft has had a flexible work policy since late 2020, letting most employees work remotely for as much as 50% of the time without approval. In practice, this policy has been much more flexible, allowing most employees to work remotely most of the time.

Now, the company is considering a new policy that requires most employees to work in the office at least three days a week, the people with knowledge of the plans told BI.

Microsoft spokesperson Frank Shaw confirmed the company is considering updating its flexible work guidelines. He said no decisions have been finalized.

Getting in line on RTO

Such a move would bring Microsoft more in line with other Big Tech companies, which have been rolling out tougher RTO policies this year.

Amazon, Microsoft's crosstown rival, mandated a rigid RTO policy earlier this year that required employees to work in-person five days a week. AT&T introduced a similar policy late last year and CEO John Stankey recently told staff to get on board or get out.

The policy Microsoft is considering would be similar to those at Meta and Google, which generally require most employees to work from offices three days a week. Some Microsoft teams, such as the Corporate, External, and Legal Affairs (CELA) group, already work in the office more than three days a week.

More pressure on employees

Cracking down on remote work is part of a broader trend in the tech industry that includes increased employee-performance pressure at Microsoft and other companies.

Microsoft's cloud and AI boss Scott Guthrie told employees in an internal meeting last September that the company would not consider changing its flexible work policy unless there was a noticeable drop in productivity.

It's unclear whether that's happened, but what is clear is that Microsoft's approach to employee performance has changed since then. The company fired thousands of employees deemed low performers this year and introduced a new performance improvement plan meant to exit low performers more quickly.

Microsoft's top finance executive Amy Hood last week told employees in an internal memo that the upcoming year will require "intensity," building on an earlier memo from CEO Satya Nadella asking employees for "dedication, drive, and hard work."

Microsoft sells software that enables remote work, and has pitched hybrid work as a way to reduce costs, retain employees, and increase their productivity.

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Sharon Stone says she still makes more money modeling than acting

Sharon Stone in a gold jacket and top
Sharon Stone.

Matt Winkelmeyer/Getty Images

  • Sharon Stone said she earns more money from modeling than acting despite her Hollywood success.
  • Stone began her career in modeling, signing with Ford Models as a teenager.
  • Stone's acting roles include classics like "Basic Instinct" and "Casino."

Sharon Stone has been a Hollywood icon for over a quarter century, but when it comes to getting paid, her acting work isn't the most lucrative.

"I still make more money today modeling than in film," Stone, 67, told Business Insider. "It's still a huge part of my reality."

Stone started her career as a model, quitting school at 15 and moving to New York City to enter the fashion world. She was quickly signed by Ford Modeling Agency and found herself working regularly in Milan and Paris.

Sharon Stone sitting on a couch
Sharon Stone in 1985.

Photo 12/Universal Images Group/Getty Images

By 19, she returned to New York and began pursuing acting as a path to her initial goal: directing.

"Back then, I wanted to be a director, but the pesky vagina has stood in my way. Because how could you possibly have a brain and a vagina?" Stone told BI. "It seems to have confounded so many."

In those early days, Stone rollerbladed around Manhattan to her auditions, her giant modeling portfolio in tow. She got her big break in 1980, when she was cast as one of the extras in Woody Allen's "Stardust Memories," and was later asked to step in for a spot in the movie's opening scene, where Allen, sitting on a train, sees a beautiful woman across from him on another train.

Sharon Stone with a kiss face on a train
Sharon Stone in "Stardust Memories."

United Artists

"I was 19 and they put me in this tight dress, and I was so awkward about my body," Stone recalled. "The hair person put a real gardenia in my hair. It really meant the world to me that she did that. It made me feel important."

Stone became a hot commodity in Hollywood after "Stardust Memories." After regularly working in B-movies through the 1980s like "King Solomon's Mines" and "Police Academy 4," she landed the role that would change her life when she scored the female lead in the 1992 sensation "Basic Instinct." Though the role made her an icon, she wasn't paid like one.

sharon stone basic instinct
Sharon Stone in one of the most iconic scenes in movie history.

"Basic Instinct"/TriStar Pictures

In 2023, Stone revealed she was paid $500,000 for "Basic Instinct" while her costar Michael Douglas earned $14 million.

She went on to earn an Oscar nomination in 1996 for her performance opposite Robert De Niro in Martin Scorsese's "Casino," and won an Emmy in 2004 for her guest spot on "The Practice." But her career was also dogged by money troubles: the actor revealed in 2024 that she lost $18 million in savings after suffering a stroke in 2001.

"When I got back into my bank account, it was all gone. My refrigerator, my phone β€” everything was in other people's names," Stone said. "I had zero money."

Over the years, Stone has modeled for high fashion brands like Dior and Dolce & Gabbana, and recently did ads for Mugler.

"I'm still one of the oldest women consistently modeling today," Stone said. "I'm very, very grateful I still get to do it."

Next, Stone will star in "Nobody 2," opening in theaters August 15.

Read the original article on Business Insider

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Microsoft CFO calls for 'intensity' in an internal memo, after blowout earnings

Amy Hood, Microsoft's chief financial officer, standing on a stage and speaking.
Amy Hood, chief financial officer at Microsoft.

Stephen Brashear/Getty Images

  • Microsoft's top finance executive sent an internal email to workers calling for "intensity" in 2026.
  • Last week, another memo from the CEO attempted to explain big job cuts in the midst of huge profit.
  • On Wednesday, Microsoft reported a quarterly profit of $27 billion.

Microsoft employees should strap in for another year of "intensity," according to the software giant's top finance executive.

Chief Financial Officer Amy Hood sent an email to employees on Wednesday after the company reported a $27 billion quarterly profit, telling them the year ahead will require "intensity, clarity, and bold execution."

Hood sends out these emails every quarter when Microsoft discloses its financials. Her missives mostly rehash what the company reports publicly, such as how revenue and profit are growing.

Sometimes, though, Hood's emails provide insight into what the company's top executives deem most important and what they want employees to know.

This time, Hood highlighted updates she said were personal "reminders of the scale and importance of the product and services our customers count on us to deliver." She noted that Azure revenue reached more than $75 billion β€”Β the first time the company has disclosed this number β€” and grew 34%.

What perhaps stood out most was Hood's message to employees, reiterating priorities for the upcoming year, and citing a memo from CEO Satya Nadella last week.

"We're entering FY26 with clear priorities in security, quality, and Al transformation, building on our momentum and grounded in our mission and growth-mindset culture," Hood wrote, mentioning Nadella's email. "Both the pace of change and customer expectations are continuously accelerating."

Hood's email, notably, did not mention Microsoft's recent workforce cuts, which have exceeded 10,000 this year even as profit swells. Nadella's email last week attempted to explain this "seeming incongruence" as the "enigma of success." Some employees weren't satisfied with the explanation.

Hood's email expanded on Nadella's thoughts by telling employees the upcoming fiscal year will require "intensity," which has become a buzzword in the tech industry as companies dial up performance pressure and make significant workforce cuts.

"FY26 will require intensity, clarity, and bold execution," Hood wrote. "I'm excited about what we'll accomplish together as we lead in this next frontier of innovation β€” driving impact at scale for every customer, every partner, and every community we serve around the world."

Microsoft did not comment on Hood's memo.

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Google took a month to shut down Catwatchful, a phone spyware operation hosted on its servers

Google has suspended the Firebase account of Catwatchful following a TechCrunch investigation. The spyware operation was caught using Google's own servers to host and run its surveillance app, which was stealthily monitoring thousands of people's phones.
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Netflix is quietly searching for an exec to lead its video podcast efforts as it chases YouTube

Co-CEO Ted Sarandos of Netflix stands in a red carpet.
Co-CEO Ted Sarandos of Netflix, which is said to be exploring video podcasts.

Earl Gibson III/GG2025/Penske Media via Getty Images

  • Netflix is quietly searching for an exec to lead its video podcast efforts.
  • The streamer is chasing YouTube, which has cemented itself as a video podcast titan.
  • Podcast listening and advertising are on the rise, and media giants are investing.

Netflix is quietly searching for a podcast leader as it looks to bring video pods onto the streaming platform, two people close to the company told Business Insider.

Netflix had previously explored potential deals with podcasters as it sought new areas of growth, as BI first reported. The hunt for an exec to lead a video podcasting effort shows how seriously Netflix is taking the space.

The streamer's interest comes as rival YouTube has cemented itself as a living-room fixture and video podcasting powerhouse.

Netflix has also shown interest in creator content more broadly.

"We're really excited about 'The Sidemen' and 'Pop the Balloon' and a wide variety of creators and video podcasters that might be a good fit for us, and particularly if they're doing great work and looking for different ways to connect with audiences," co-CEO Ted Sarandos said on the company's second-quarter earnings call this month. "The Sidemen" and "Pop the Balloon" are two Netflix shows that began in the creator realm.

Netflix has not publicized a podcast lead job opening and declined to comment for this story.

One person who had conversations with Netflix said the company wanted someone who could make video-first podcasts for a big audience.

Many of today's biggest podcasts started as audio-only endeavors and later added video as audience habits changed and YouTube gained prominence. The lines between video talk shows and podcasts have increasingly blurred, and newer podcasts often now start with video in mind.

It's not clear where the podcast role would sit inside Netflix.

A second person who had conversations with the company said they believed it would sit in Netflix's TV and film licensing arm under Lori Conkling rather than the original content side. That could signal that Netflix might look to license existing shows, as it's done with some YouTube creators like preschool entertainer Ms. Rachel, as well as make original shows with hosts. Separate content-side hires could follow.

Edison Research has charted the continued rise of podcast listening. In a new report out this week, the firm said 73% of people ages 12 and over in the US listen to or watch podcasts, up from 55% in 2020.

Video is on the rise, too, with 51% of people 12 and up saying they've watched a podcast, according to Edison.

Podcast advertising grew 26.4% to $2.4 billion in 2024, according to the IAB. EMARKETER projects it will top $2.5 billion in 2025.

Other media heavyweights have made big moves to chase the podcast-listening audience and the advertising that can come with it.

In February, Fox acquired Red Seat Ventures, which produces Tucker Carlson, Megyn Kelly, and others. Amazon paid $300 million for podcast company Wondery in 2020, The New York Times reported at the time, after snapping up audiobook company Audible in 2008.

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Microsoft employees react to CEO's 'enigma of success' memo with a mixture of suspicion, anger, and speculation

Microsoft CEO Satya Nadella speaking at a Microsoft event in Redmond, Washington.
"DeepSeek, and R1 in particular, was the first model I've seen post some points," Microsoft's CEO Satya Nadella said.

Stephen Brashear via Getty Images

  • Some staff questioned Satya Nadella's memo on job cuts amid huge earnings.
  • Microsoft has shed thousands of employees this year, as it spends $80 billion on AI.
  • Employees speculated about the memo's intent, and whether it presages more cuts.

Microsoft employees are reacting to a memo from CEO Satya Nadella that attempted to explain why the company has cut jobs while generating huge profits and spending billions on AI.

Microsoft has shed thousands of employees this year. The company has earned $75 billion in profit over the past three fiscal quarters, and plans to spend $80 billion on AI infrastructure in 2025. The stock also hit a record earlier this month.

Nadella sent a memo to employees on Thursday describing this "seeming incongruence" as the "enigma of success." The company expects total headcount to remain roughly flat.

Inside Microsoft, some staff speculated about what may have driven Nadella to write the memo: Are more job cuts coming? Is he feeling guilty about earnings, which the company is due to report next week? Was this just a message to Wall Street?

Nadella knows employees are stressed out

Nadella wrote the letter because he knows employees are stressed about increased performance pressure, AI competition, and job cuts, a person familiar with the matter said. Microsoft's last big employee "Signals" survey came out before the recent job cuts, but the company still gauges employee sentiment through daily and weekly "pulse" surveys.

Microsoft has about 220,000 employees, so it's hard to externally gauge the sentiment across the workforce broadly.

"With a company our size, you can imagine we have a variety of reactions internally that range from positive to constructive," Microsoft spokesman Frank Shaw said. "Satya heard directly back from a number of employees who appreciated his leadership as well as the content and tone of his message."

Criticism from some workers

Reactions from some employees, shared directly with Business Insider and on an employee message board, provide a partial window into how Nadella's memo was received internally.

One employee told BI that they couldn't tell if the CEO was trying to mend feelings or prepare people for more pain.

Another said Microsoft was prioritizing KPIs over people. (KPIs, or key performance indicators, is a common way for businesses to measure how they're doing.)

Handling jobs cuts is never easy, as ousted workers often feel aggrieved and remaining staff can be demoralized.

Another Microsoft staffer told BI that Nadella's memo was tone deaf. This person compared the company to a coal mine and said the CEO is focused on getting more coal and doesn't care how he gets it.

Blind suspicion

Some users in a Blind message board, which requires a Microsoft.com email address to sign up, blasted Nadella's message.

One user posted a parody of Nadella's letter, titled "A quick memo on your continued utility."

Pretending to speak as Nadella, this person said constant chaos, shifting teams, and cancelled projects are not a bug, but a feature designed to keep workers anxious, compliant, and too scared to question leadership decisions. The person also advised colleagues to stay useful, or they risk being replaced.

Another post was an apparent critique of Nadella's email, attributed to Copilot, Microsoft's AI assistant. It argued that the rationale behind the layoffs was not fully explained, and didn't directly acknowledge the emotional toll of ongoing change or support mechanisms.

Another user on the Microsoft Blind message board speculated that Nadella was sending a signal to Wall Street. (This is a common technique for most public companies, which exist to serve shareholders, along with customers and employees.)

Microsoft likely understood that the CEO memo would be leaked to BI, suggesting it was crafted as a reminder to investors that layoffs have been happening, there are more to come, business is strong, this person wrote.

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A new spin-off from Tom Purcell's Alua Capital joins the Tiger Cub family tree

nasa space shuttle challenger launch flock birds 51l jan 28 1986
Alix Karlan plans to launch his firm in the fourth quarter this year.

NASA

  • Otter Rock is the latest member of the extended Tiger Management family tree.
  • The long-short equity fund is a great-grandcub, as its founder worked at Tom Purcell's Alua Capital.
  • Alix Karlan previously worked for Andreas Halvorsen's Viking Global as well.

Alix Karlan is taking advantage of the renewed appetite for old-school stock pickers.

The former technology sector head for Tom Purcell's $3 billion hedge fund Alua Capital is planning to launch Otter Rock in the fourth quarter of this year, a person close to the firm told Business Insider. The fund's commingled vehicle is expected to raise $300 million before launch, and there's a chance the firm might take on additional capital via a separately managed account, the person said.

Karlan declined to comment.

The new fund will invest in stocks across different sectors, with a focus on companies undergoing technological disruption, the person said. It will be based in Stamford, the Connecticut town that is also the headquarters for Steve Cohen's Point72 and Paul Tudor Jones' long-running investment manager.

So far, the firm has hired Dan Beckham as chief operating officer. Beckham, according to his LinkedIn profile, has worked in various executive roles in asset management for decades, most recently as the head of investor relations and business development at private equity firm Saturn V Capital.

Karlan started as an analyst at Andreas Halvorsen's Viking Global before going to Stanford Business School. He joined Purcell's firm in 2015 and worked there until the start of 2024, when he began trading his own capital using the strategy he plans to deploy at Otter Rock.

He's the latest addition to the extended Tiger Management family tree, which includes big-name managers known as Tiger Cubs, such as Tiger Global, Coatue, Lone Pine, and the aforementioned Viking, as well as funds started by former employees of these managers. Alua, for example, is run by Purcell, a former executive at Viking, and Marco Tablada, a onetime Lone Pine investor.

Despite Julian Robertson, the billionaire founder of the legendary firm, passing away in 2022, his firm is still active and continues his legacy of backing external managers. The Tiger Cubs, started by former analysts of Robertson's, have spawned the next generation of stockpicking hedge funds, led by Viking in particular.

Former Viking investors who have become founders include Purcell, D1 founder Dan Sundheim, Avala Global founder Divya Nettimi, and Voyager Global founder Grant Wonders. The industry is also closely tracking the progress of former Viking executive Ning Jin's soon-to-launch firm, Avantyr Capital.

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Michael Shvo's long-stalled Miami Beach hotel and condo project attracts potential new buyer

Ariel shot of Miami Beach hotel
Ariel shot of the Raleigh property in 2024

BI

  • Michael Shvo and partners purchased three Miami Beach hotels in 2019.
  • Plans to turn them into a luxury destination were never finished, and the site remains empty.
  • A new buyer is lined up, but Shvo could still match the roughly $275 million offer.

The Raleigh, a prominent condo and hotel project along the glitzy Miami Beach waterfront, could soon change hands after six years of stalled development.

Two people with direct knowledge of sales discussions said Nahla Capital, a New York City-based residential builder, has won a bidding process to purchase the property. One of those people said Nahla agreed to pay around $275 million for the project.

They requested anonymity because the sales discussions are confidential.

Real estate developer Michael Shvo, who acquired in the Art Deco district of Miami Beach in 2019 for roughly $243 million, is attempting to match Nahla's offer and retain control of the project, the two people said. They cited a provision that gives Shvo a first right of refusal on bids. To proceed, he would have to raise fresh capital to pay off his partners in the project and also potentially arrange new debt or extend his current loan.

The Raleigh developmentΒ consists of three adjacent hotels in the Art Deco district of Miami Beach: the Richmond, the South Seas, and the 80-year-old namesake property, the Raleigh.

Among Shvo's chief financial backers was Bayerische Versorgungskammer, a large German pension system known as BVK that has invested in several US real estate deals with Shvo.

"BVK generally does not comment on market rumors and speculation about transactions," a BVK spokesman wrote in an emailed statement.

A deal could herald a new chapter for the project, which for years has consisted of little more than the derelict remains of the three hotels and a vacant dirt lot.

Shvo has said he would restore and redevelop the hotel properties, build an exclusive beach club and restaurant abutting a famous historic pool at the site, and raise a new ultra-high-end condo tower designed by the star architect Peter Marino.

But aside from preliminary site work, including demolition of existing structures, the development never got off the ground. In January, a team from the commercial real estate brokerage and services firm Newmark was hired by an undisclosed partner in the project to shop it to interested takers, as Business Insider has previously reported.

Aerial shot of Miami Beach
Aerial shot of Miami Beach

BI

Helping to push a sale is the project's $190 million of debt, which was due to expire on July 16. BH3, the Miami-based commercial lender and developer that provided the loan, recently agreed to a three-month extension to allow the Nahla, or Shvo, to arrange an acquisition, one of the people with knowledge of the deal said.

Holding the property has saddled the current owners with considerable costs. As Business Insider previously reported, the group paid nearly $20 million in interest on the project's loan in 2023 alone and millions of dollars more in taxes, insurance, and other charges.

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Anduril founder Palmer Luckey wants to make computers American again

Ashlee Vance and Palmer Luckey, represented by a humanoid robot in a Hawaiian shirt
Core Memory founder Ashlee Vance interviews Palmer Luckey, represented by a Foundation humanoid robot, at the Reindustrialize Summit in Detroit.

Julia Hornstein / BI

  • Palmer Luckey teased the idea of Auduril manufacturing American-made computers.
  • Luckey joined the Reindustrialize Summit in Detroit virtually.
  • The Anduril founder also emphasized the importance of working with partners to build tools.

Palmer Luckey, the founder of Anduril, the defense tech giant that makes weapons and military products, announced that it could produce American-made computers at the Reindustrialize Summit, a conference about modernizing American manufacturing, in Detroit on Thursday.

"This is one of those things where I started talking to companies years ago about this," Luckey said. "I think there's a chance that it's going to be Anduril."

Luckey added that Anduril has held conversations with "everyone you would need to have to do that," including people "on the chip side, on the assembly side, on the manufacturing side."

Anduril doesn't yet make computers, and Luckey isn't completely sold on the effort. He told the crowd: "There are some things Anduril has to do," he said. "There are other things we'd rather have other people do. This is something I'd rather have other people do."

American-made computers aren't a novel concept. PC-maker Dell had several manufacturing plants throughout the US, but in 2009, it closed its North Carolina plant and announced a change to its international manufacturing partner, moving from Ireland to Poland.

Luckey, who addressed the crowd virtually and with a humanoid robot from Foundation, also added that Anduril will not build its own humanoid robot: "We're going to partner with other companies where it makes sense," he said.

Anduril, which was cofounded by Luckey in 2017, makes hardware for the US military, including drones and underwater submersibles, and an AI-powered software platform, Lattice. The company is also working on extended reality headsets and other wearables for the military in a partnership with Meta, which the companies announced in May.

Luckey declined to share what he would name the computer if he were to make it, but hinted that "it's pro-American, and also a gambling reference, but I'll leave it at that."

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