Energy stocks are gold in the market, according to “Shark Tank” investor Kevin O’Leary.
“If you didn’t own energy in the last 18 months, you missed the market,” he said in a recent interview.
O’Leary is bullish on the market this year, despite warnings of a recession and a stock crash from commentators.
Energy stocks are a bright spot in the market and the US is set to sidestep a significant downturn, according to “Shark Tank” investor Kevin O’Leary.
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“I love energy. Everyone hates energy. If you didn’t own energy in the last 18 months, you miss the market. Go where people hate it. Energy is driving the pivot,” O’Leary said in an interview with Fox’s “Kudlow” on Wednesday. “That sector is looking golden right now.”
That echoes the view of other Wall Street strategists, who have forecasted a good year for energy, commodities, and industrials while other sectors continue to struggle after a bruising 2022.
Goldman Sachs’ commodities chief Jeff Currie predicted markets would be gripped by an energy supercycle over the next 12 years, with significant gains in areas of the “old economy” following a long period of underinvestment that has led to supply chain snags. Those factors will drive prices higher over the next decade, Currie predicted, contrary to trends in tech and growth stocks, which will struggle against interest rates and high inflation.
From Tom Brady to Kevin O’Leary, here are 12 famous backers of FTX set to be wiped out in the exchange’s stunning collapse
The fall of FTX has led to billions of dollars in losses for both its investors and customers.
As FTX goes through the bankruptcy process, details are starting to emerge about who its investors were.
From Tom Brady to Kevin O’Leary, here are 12 famous backers facing a wipeout in the dramatic collapse.
The spectacular downfall of FTX last year has cost investors and customers of the cryptocurrency exchange billions of dollars.
As the company goes through the bankruptcy process, more details are starting to emerge about who exactly were the equity investors in FTX. At its peak, the company reached a valuation of $32 billion. FTX is essentially worthless today and its new CEO, John Ray III, is solely focused on recovering as much as possible to pay back its creditors and customers.
“At the end of the day, we’re not going to be able to recover all of the losses here,” Ray said last month.
During typical bankruptcy proceedings, bond holders and other debt investors are often able to recoup some of their losses, while equity investors are usually wiped out entirely.
As part of its ongoing bankruptcy process, FTX released a list of its investors on Monday, detailing just how many investors are set to be completely wiped out from the downfall of the crypto exchange. The list includes hundreds of investors that own billions of shares of the different FTX entity structures.
From Tom Brady to Kevin O’Leary, here are 12 famous backers that invested in FTX and are now facing a wipeout.
1. Tom Brady
The court document revealed that Brady, who was a brand ambassador for FTX and appeared in a commercial for the company, owns just over 1.1 million common shares of FTX Trading.
It is unclear exactly how much money Brady lost on his FTX investment.
2. Robert Kraft
Billionaire Robert Kraft, who owns the New England Patriots football team, was listed in the FTX bankruptcy document. Through KPC Venture Capital, Kraft owns over 110,000 Series B preferred shares of FTX Trading, as well as 479,000 common shares and about 44,000 Series A Preferred shares of West Realm Shires, the company that controls FTX’s US-based exchange.
It is unclear exactly how much money Kraft lost on his FTX investment.
3. Gisele Bündchen
4. Kevin O’Leary
Kevin O’Leary’s venture capital firm, O’Leary Ventures, was listed as owning 139,000 Class A Common shares and 12,631 Series A Preferred shares of West Realm Shires. O’Leary Ventures also owned 25,944 common shares and 6,486 Series B-1 Preferred shares of FTX Trading.
O’Leary has said the FTX implosion cost him his $1 million equity investment in FTX, as well as a loss of nearly $10 million in crypto he held on the exchange. O’Leary also said he was paid $15 million to be a paid spokesman for the company.
5. Anthony Scaramucci
Funds associated with Anthony Scaramucci’s SkyBridge Capital were listed as owning 1.3 million Class A Common shares of West Realm Shires. Additionally, SkyBridge funds were listed as owning 244,196 common shares and 61,049 Series B-1 Preferred shares of FTX Trading.
It is unclear exactly how much money Scaramucci’s SkyBridge Capital lost on its FTX investment.
6. Sequoia Capital
Funds associated with Sequoia Capital were listed as owning 32.7 million Class A Common shares and 5.2 million Series A Preferred shares of West Realm Shire. The venture capital firm was also listed as owning 2.3 million common shares, 572,335 Series B-1 Preferred shares, and 4.8 million Series B Preferred shares of FTX Trading.
Funds associated with Thoma Bravo were listed as owning 19.7 million Class A Common shares and 4.4 million Series A Preferred shares of West Realm Shire. Thoma Bravo also owned 4.6 million Series B Preferred shares of FTX Trading.
Hedge fund Tiger Global was listed as owning 1.3 million Class A Common shares and 6.6 million Series A Preferred shares of West Realm Shire. Tiger was also listed as owning 236,565 common shares, 59,141 Series B-1 Preferred shares, and 323,612 Series C Preferred shares of FTX Trading.
Third Point Ventures, the venture capital arm of Dan Loeb’s Third Point hedge fund, was listed as owning 6.6 million Class A Common shares and 4.4 million Series A Preferred shares of West Realm Shire. Third Point was also listed as owning 152,620 common shares, 1.3 million Series B Preferred shares, 38,155 Series B-1 Preferred shares, and 431,482 Series C Preferred shares of FTX Trading.
It is unclear exactly how much money Loeb lost on his FTX investment.
10. Ontario Teachers’ Pension Plan
The Ontario Teachers’ Pension Plan was listed as owning 12.0 million Class A Common shares and 8.8 million Series A Preferred shares of West Realm Shire. The pension also owned 2.2 million common shares and 558,376 Series B-1 Preferred shares of FTX Trading.
Singapore’s state-funded investment firm Temasek owned 32.8 million common Class A shares, and 26.2 million Series A preferred shares of West Realm Shires, the company that controls FTX’s US-based exchange.
Temasek also owned 1.5 million common shares, 3.8 million Series B Preferred, 381,556 Series B-1 Preferred, and 1.3 million Series C Preferred shares of FTX Trading.
An LLC dubbed 2021-015 Investments, which is associated with Peter Thiel, was listed as owning 245,000 Class A Common shares of West Realm Shire. The business was also listed as owning 45,784 common shares and 11,446 Series B-1 Preferred shares of FTX Trading.
It is unclear exactly how much money Thiel lost on his FTX investment.
13/13 SLIDES
O’Leary also remained optimistic on the economy broadly. He previously made the case that the US could still sidestep a recession in 2023, despite warnings of an impending downturn from other Wall Street forecasters. Though inflation is still well-above the Fed’s 2% inflation target, the labor market and consumer spending are still strong, he said, emphasizing that a soft-landing was still possible.
He added that the market will benefit this year from gridlock in Washington, a “secret-sauce” that has traditionally led to higher returns in the S&P 500. He forecasted at least a 8% return on the benchmark stock index in 2023, rebounding from its dismal performance of last year.
Markets have also changed for the better after the pandemic, which could boost profits, he added.
“A lot of productivity came through the pandemic. A lot of digitization,” he said. “The reason that you should think optimistically about margins and free cash flow is many companies have figured this out. There’s a new America 2.0, and I hate to be optimistic when I should be pessimistic, but I can’t be,” O’Leary said.
That’s contrary to what other Wall Street experts have said, warning of an impending downturn and market crash as the economy shows signs of stress. Bank of America, JPMorgan, and Citi have all forecasted at least a mild recession to strike this year, with Bank of America preparing for a 24% plunge in the market.
