Below, EPI senior economist Elise Gould offers her insights on the jobs report released this morning. 

Finally, the first #JobsDay since the shutdown! The latest data out today is for September before the shutdown began on October 1.

Highlights:
– payroll employment up 119k for Sept while August change was revised down to below zero
– unemployment rate ticked up 3 months in a row to 4.4%

#EconSky

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— Elise Gould (@elisegould.bsky.social) Nov 20, 2025 at 7:42 AM

Even with the faster than expected growth in payroll employment for September, downward revisions for July and August meant that combined July+Aug job growth was 33k less than originally reported. Over the last three months, job growth averaged 62k with small losses in both June and August.
#EconSky

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— Elise Gould (@elisegould.bsky.social) Nov 20, 2025 at 7:59 AM

Job gains were strongest in leisure and hospitality and health care while there were losses in transportation and warehousing and professional and business services. Manufacturing, mining, and the federal government also registered losses. On net, 119k jobs added in September.
#EconSky #NumbersDay

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— Elise Gould (@elisegould.bsky.social) Nov 20, 2025 at 8:11 AM

Federal cuts continue to cost jobs as federal employment fell another 3k in Sept. Federal employment is down 97k since January. The full extent of the federal job losses won’t be seen until we get data for October after upwards of 100k additional federal workers left payrolls after Sept 30.
#EconSky

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— Elise Gould (@elisegould.bsky.social) Nov 20, 2025 at 8:17 AM

The household survey is a useful read on the labor market for various demographic groups. The unemployment rate ticked up to 4.4%, its highest since 2021. While a more volatile series, the data show high Black unemployment, holding steady at 7.5% in September, and 1.5 ppts higher than May.
#EconSky

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— Elise Gould (@elisegould.bsky.social) Nov 20, 2025 at 8:28 AM

In addition to Black unemployment, I’ve been keeping my eye on the unemployment rate for young workers. With depressed hires, I’m concerned about the ability for young workers to break into the labor market. Their unemployment rate has been steadily rising for much of the last 2 1/2 years.
#EconSky

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— Elise Gould (@elisegould.bsky.social) Nov 20, 2025 at 8:36 AM

Aleksandra Sagan of The Logic reports B.C. pension fund manager creates joint venture to use quantum tech for better investing:

British Columbia Investment Management Corp. said Monday it has joined forces with Quantum Algorithms Institute, a B.C.-based non-profit working to accelerate the adoption of quantum technologies. CEO Gordon J. Fyfe said QAI will help it “prepare for the risks and opportunities ahead.” (The Logic)

Talking point: The two will identify ways to optimize BCI’s portfolio, risk assessment and financial modelling with quantum technologies, as well as improve security standards. The latter has been a focus for BCI for some time. BCI said in its most recent annual report that it is “preparing… to be post-quantum ready, ensuring our data and systems remain secure.” BCI, which manages investments for 32 public sector clients such as pension funds, has $295 billion in gross assets under management, according to its most recent annual report. It has invested in quantum tech previously, backing B.C.-based Photonic Inc. since 2021. 

Bloomberg also covered this story here.

On Monday, BCI issued a press release to state that in has entered into a joint venture with QAI to be "post-quantum ready": 

Joint initiative reinforces British Columbia as a hub for quantum innovation in Canada 

VICTORIA, BC – November 17, 2025 – British Columbia Investment Management Corporation (BCI), one of Canada’s largest institutional investors, and the Quantum Algorithms Institute (QAI), a non-profit organization supporting adoption of quantum technologies in British Columbia, today announced a joint initiative to advance post-quantum readiness.  

“Working with QAI gives us access to world-class quantum expertise as we prepare for the risks and opportunities ahead,” said Gordon J. Fyfe, Chief Executive Officer and Chief Investment Officer at BCI. “Quantum computing will impact how investors around the world protect systems and approach complex investment scenarios. We are positioning BCI to leverage this technology for business advantage as it becomes more widely available.” 

Together, BCI and QAI will work to identify quantum investment applications for portfolio optimization, risk assessment, and financial modeling, while implementing post-quantum security standards to support BCI’s long-term operational resilience. QAI will use the insights gained through this hands-on experience to support quantum preparedness across British Columbia and Canada’s business ecosystems.  

“With quantum computers expected to be commercially viable within three to five years, this collaboration will offer critical learnings that extend beyond BCI,” said Louise Turner, Chief Executive Officer of QAI. “We’re developing playbooks and use cases that can help other organizations – from governments to small businesses – build their own quantum readiness.” 

BCI’s quantum experience extends beyond operations to its global portfolio. This includes investments like Photonic Inc., a British Columbia-based quantum computing company backed since 2021, which offered early insight into the technology’s evolution and commercial potential. The joint initiative with QAI builds on this strong foundation and BCI’s broader commitment to accelerating innovation.  

I suggest you visit Quantum Algorithms Institute's site to understand what they are doing and how they can help BCI improve its investment operations, bolster its investment and operational risk management. 

Before you dismiss this as a bunch of quantum computing malarkey which admittedly was my first impulse, I invite you to read this KPMG insight paper on data safety in the quantum computing age:

Today’s world runs on data, from emails and passwords to financial and medical records, from factories, schools and armies to energy grids and telecommunications networks. And encryption protects this data, preventing criminals and hackers and other bad actors from getting their hands on this precious resource.

While cracking encryption would take a traditional computer billions of years, with the emergence of quantum computing these codes could potentially be broken in hours. It is possible that encrypted data may have already been stolen, with the anticipation that in the next decade or so, quantum computers might be able to decrypt this information. That’s a concerning prospect when you consider that certain types of data should be kept secure for many years or decades. These include health records and financial information, defense designs, autonomous systems and critical infrastructure, like payment systems, telecommunications and energy supply.

Misuse of data has a real-world impact on people. When hackers are able to steal individuals’ identities to misdirect payments (such as house deposits or salaries), apply for credit cards or passports, or file for government benefits, the impacts to respective financial systems could stretch to trillions of dollars. Organizations could fall prey to phishing and malware attacks, leading to business interruption, ransoms and negative publicity.

This is not a future problem but an immediate issue. On the one hand, numerous governments, companies and researchers are racing to scale up their quantum computing systems, with many technology companies producing quantum roadmaps towards large, error-corrected quantum computers. On the other hand, these organizations are also seeking smart ways to make it harder to crack encryption, by producing quantum-safe cryptosystems. Nor is it just a technological threat; there are likely to be regulations that could leave organizations facing penalties for failing to meet encryption standards, as well as being locked out of defense, national security, health and government contracts, as procurement requirements are updated.

In the US, for example, the Quantum Computing Cybersecurity Preparedness Actopens in a new tab requires federal government agencies to “adopt technology that will protect against quantum computing attacks.”1 The Australian Signals Directorate (ASD) has updated its guidelines for cryptography and information security.2,3 And in February 2025, Europol hosted a Quantum Safe Financial Forum (QSFF) event, calling on financial institutions and policymakers to prioritize the transition to quantum-safe cryptography.4 Which has been followed by a European Commission transition timeline for critical infrastructure, starting in 2026 and to be completed by 2030.5 As quantum computing evolves, and the cyber threat increases, we can expect to see an increase in industry-specific frameworks, regulations, and best practice guidelines.

Creating a quantum-resilient organization

Encryption is typically implemented by internal IT teams, cloud and software providers. However, despite being totally reliant on encryption, many organizations know relatively little about how and where the data they use is encrypted. This magnifies the challenge of quantum resilience, which now calls for an understanding of both your own cryptographic implementation as well as all dependent systems.

To protect against quantum cyber risk, organizations should adopt post-quantum cryptography (PQC) algorithms, which resist the efforts of powerful quantum computers. The US National Institute of Standards and Technology (NIST) has already made such algorithms available. Transitioning to PQC is a major effort over several years, involving the entire enterprise — not just IT — preferably overseen by a cross-organizational encryption leader.

PQC algorithms would need to be implemented in various software solutions, including key libraries, digital signatures and authentication. Given the scale of the task, it’s important to broaden cyber expertise, plan budgets, and empower teams to manage this increasing risk, as part of a multi-year transition effort.

Organizations should aim to build a cryptographic bill of materials (CBOM), to better understand what encryption is being used, and where. The CBOM lists all the cryptographic assets employed across software (including software-as-a-service), services, and infrastructure — within the enterprise and across the supply chain. It’s also vital to assess the level of risk of each asset, to prioritize high-value data — which varies between sectors. For consumer companies, for example, customer data is paramount; in life sciences, intellectual property is especially valuable. Other organizations may be keen to protect financial, operational, and employee information.

These key efforts support the development of a roadmap for discovery, assessment, management, remediation and monitoring the transition to quantum resilience, and coping with ongoing risk. This requires coordination across the IT estate. With so many players involved in encryption, contractual agreements with third parties should specify appropriate levels of quantum cybersecurity and clarify how the PQC transition can be harmonized. Procurement strategies, whether for devices or software, should also be updated to include quantum-resistant technologies, so that these IT investments can support PQC requirements during their lifetime.

As is already the case it's vital to review data retention policies, to reduce the time that sensitive data is stored and only retain data that’s absolutely necessary, while deleting data no longer needed. To maintain operational continuity, organizations should make appropriate enhancements to security controls (based upon their unique risk profile) to integrate PQC, and to select and test quantum-safe, cryptographically agile solutions in their IT infrastructure, ahead of full deployment.

Get started

It is not yet a full quantum computing world, but it soon will be. As they prepare to adopt PQC, IT leaders should be aware that this is not a standalone project but a transition to a new business-as-usual. It will take several years and impact the entire enterprise, calling for multiple internal and external stakeholders to build a willing coalition. With bad actors always seeking to find ways to break encryption, organizations should continually re-evaluate their defenses. Getting started now, with a carefully managed plan for PQC transition, can help to keep one step ahead, maintain resilience and operations, with safe, secure, data. 

What this tells me is quantum computing is already here, you need to prepare for consequences, thinking strategically to play good defence and offence (seizing opportunities as they arise).

Will BCI's joint venture with QAI make it quantum prepared? I have no idea, at least they got the ball rolling here and other large pension funds will surely follow.

Lastly, if BCI can afford quantum computing, it can afford to pay its tab for Pension Pulse (just sayin').

Below,  within a decade, quantum computers will be able to break virtually any encryption algorithm in use today. What used to be science fiction is on its way to becoming a commercial reality. Once that happens, quantum computers will be able to crack in minutes what was supposed to be unbreakable for more than a century using the most powerful computers available. 

Erik Wood, senior director of cryptography and product security at Infineon, talks about cryptographically relevant computers, how they work, and how that will affect computer architectures and chip design  

Layan Odeh and Paula Sambo of Bloomberg report CPP Investment Board revamps growth equity after uneven returns:

Canada Pension Plan Investment Board is revamping a private equity strategy that focuses on high-growth companies after getting mixed results in the strategy, according to people familiar with the matter.

The pension manager’s growth equity group holds stakes in about 30 companies, mostly in various subsectors of technology, including artificial intelligence and financial tech. But after a flurry of dealmaking in 2021 and 2022, the team has dramatically slowed the rate of new direct investments following a period of soft returns.

Lately, it’s shifted some assets into a different portfolio, and it plans to lean heavily on third-party managers to source new investment ideas, the people said, asking not to be identified discussing internal matters.

Canada’s largest pension fund invested in about four firms over the past few months, including putting US$75 million into OpenAI and participating in Wealthsimple Financial Corp.’s latest equity round. But it’s only done a handful of other direct investments in the growth equity category since the beginning of 2024.

The fund’s San Francisco office is closing at the end of this year, and the new head of growth equity, Max Miller, has relocated to Toronto, a spokesperson said. There are three other managing directors within the group, according to its website. Lisa Conway recently joined the pension fund from Ontario Municipal Employees Retirement System.

 

Michel Leduc, the pension manager’s head of public affairs and communications, said the slowdown in deal activity is related to the correction that took place in technology and growth companies after the COVID pandemic eased and interest rates shot higher, starting in 2022. Deal flow is picking up again, he said, and he predicted that there’s more activity to come. 

“The current fiscal year will represent one of our biggest years ever for direct investing in growth equity companies,” Leduc said. The private equity department, which includes the growth team, has always relied on a partnership model and there’s no change in that or the team’s “appetite” to invest directly, he added.

Miller became leader of the growth equity team in June — the third person to hold that role since 2023 — taking over from Monica Adractas, who’s becoming an adviser to the $732 billion fund. He reports to CPPIB’s head of funds Afsaneh Lebel, according to a person familiar with the matter.

The fund doesn’t disclose the returns of its growth equity portfolio, but performance has been uneven, according to people familiar with the matter.

Typically, growth equity investments fall somewhere in between venture capital and traditional buyouts, seeking to provide capital to businesses that are more established than startups but are still accelerating. CPPIB has been investing in these kinds of companies for many years, but made the decision three years ago to highlight the group as a distinct entity within its larger private equity division.

At the time, Suyi Kim, then global head of private equity, said her investment team had “all the elements required to build a formal growth equity practice that was truly one of a kind, on a global scale.”

CPPIB was not alone in making bets on growth stocks, which surged during the pandemic era of ultra-low interest rates. About half of CPPIB’s growth equity direct holdings were made between 2020 and 2022, according to its website. But tech sector valuations got crunched when the cost of capital changed.

Some of investments have shown huge progress, such as software firm Databricks Inc., which recently raised money at a $100 billion valuation, and KoBold Metals Co., which is searching for lithium and other minerals in the Democratic Republic of Congo and is backed by billionaires including Jeff Bezos and Bill Gates.

CPPIB also scored recent gains when two of its holdings, Klarna Group Plc and Netskope Inc., went public and attracted strong investor interest.

Others have had notable public stumbles. Shares of Sana Biotechnology Inc have plunged more than 80% since it went public in 2021. CPPIB invested in the firm in 2019.

Plaid Inc., a fintech that acts as a middleman between financial institutions and startups, raised money in April at a $6.1 billion valuation, less than half of what it was worth in 2021, when CPPIB invested in it. Another of its holdings from that year, Canadian chip startup Untether AI, began winding down operations in June, with its team moving to Advanced Micro Devices Inc. CPPIB no longer holds this investment, said the person.

The portfolio also includes N26, Germany’s largest digital-only bank, which is undergoing a shakeup that led to the departure of its co-chief executive officer after the country’s financial regulator identified deficiencies in the bank’s internal controls.

A few months ago, the pension plan had around 40 companies in its growth equity portfolio, but the fund has exited some investments and moved others to another entity called Integrated Strategies Group, according to a person familiar with the matter.

The group, which sits within the office of the chief investment officer, was created in 2023 to manage holdings that no longer fit within traditional investment departments.

CPPIB manages money of behalf of tens of millions of Canadian workers. 

I read this last week and take some statements in this article with a pinch of salt.

To be brutally honest, it doesn't surprise me, all these growth equity teams exhibit plenty of failures and a few successes and we are far from the pandemic heyday of 2020-2022 where rates were at zero and everyone was (literally) throwing money at public and private tech shares.

In short, rates have normalized as Michael Leduc rightly notes, valuations came down and in some cases, came down a lot.

Now we are living through another tech selloff in public markets. November has been brutal for megacap tech shares and guess what, all that trickles down to private markets as well (less appetite for risk taking in growth equity).

Look, I've seen a lot in 30+ years and I know one thing, when winter comes to VC and Growth Equity land, it's brutal.

CPP Investments wasn't the only large Canadian pension fund manager to rejig its growth equity team this year. OMERS did as well back in July.  

There are really good, smart people working at these groups but when the tide turns, it's rough. 

Personally, I would separate Growth Equity from Private Equity as I see them as two separate businesses.

Growth Equity is a lot riskier, can deliver huge returns or really lousy ones.

And when they're lousy, they're really lousy, can be a real drag on returns.

In other related private equity news, CPP Investments' Head of Secondaries, Dushy Sivanithy, recently announced on LinkedIn he's leaving the organization after seven years:

 

I honestly didn't expect that as he's a star on that Private Equity team but he obviously got poached away and I do wish him all the best in his next gig.

Tom Kapsimalis is now the Head of Secondaries at CPP Investments and he's another very experienced professional who I'm sure will do a great job handling this critical portfolio.

What else? Last week, CPP Investments announced net assets totalled $777.5 billion at the end of the second quarter fiscal 2026. You can read the details here and highlights below: 

• Net assets increase by $45.8 billion
• 10-year net return of 8.8%
• CPP Investments recognized once again for its transparency, as we ranked first among Canadian peers and second among 75 pension funds globally in the 2025 Global Pension Transparency Benchmark

Lastly, I want to congratulate CEO John Graham for winning the Eisenhower Global Citizenship Award at the 2025 Dwight D. Eisenhower Global Awards Gala.

The award was presented by Blackstone President & COO Jon Gray and just for background:

The 2025 Dwight D. Eisenhower Global Awards Gala will take place in New York City on Monday, November 10, honoring leaders who embodies the theme “70 Years of Enduring Parterships.” BCIU recognized the outstanding achievements of the following honorees:

• John Graham, President and Chief Executive Officer of CPP Investments, received the Eisenhower Global Citizenship Award
• Kenneth C. Griffin, Founder and Chief Executive Officer of Citadel and Founder, Citadel Securities, will receive the Eisenhower Global Innovation Award
• María Corina Machado, Venezuelan opposition leader and 2025 winner of the Nobel Peace Prize, will receive the Eisenhower Award

Pretty impressive to be named alongside Ken Griffin and Maria Corina Machado who also won the Nobel Peace Prize this year.

Alright, let me wrap it up there.

Below, CNBC’s “Closing Bell” team discusses tech valuations with Aswath Damodaran, professor of finance at New York University’s Stern School of Business.

Kevin Ellis of Business North Carolina reports private equity-backed Pike acquired by new private equity firms:

Private equity-backed Pike will be acquired by a partnership of private equity firms. San Francisco-based TPG and Montreal-based La Caisse announced Monday they had acquired a majority interest in Pike, which offers infrastructure engineering and construction services to more than 400 U.S. utilities and other organizations.

TPG will invest in Pike through TPG Rise Climate, the firm’s dedicated climate investing platform, with La Caisse investing alongside TPG for a significant minority interest. J. Eric Pike, third-generation founder and chairman of Pike, and Pike CEO James R. Wyche, also are investing alongside TPG and La Caisse with other existing investors.

Following completion of the transaction, the company will continue to be led by Wyche and the current management team, which combined have more than 200 years at Pike. Eric Pike will continue to serve on the company’s board of directors. Terms of the transaction were not disclosed.

Private equity firm Lindsay Goldberg purchased a majority stake in Pike in 2020. Lindsay Goldberg lined up TPG to purchase Pike in a deal valued at more than $5 billion, reports Octus, a credit intelligence and data provider firm for investment banks, law firms and advisory firms.

Founded in 1945 by Pike’s grandfather, Floyd Pike, the company was based in Mount Airy for decades before establishing its long-term headquarters in Charlotte this year. It has about 12,000 employees.

TPG has $286 billion in assets under management, along with about 1,900 employees, as of Sept. 30.

“Pike’s legacy as a family-founded company has been defined by safety, integrity and innovative solutions,” said Pike in a release. “Our success has been a direct result of the dedication of our team, our long-tenured customers and the support of our investors. I am excited to continue supporting the company with our new partners.”

“TPG’s and La Caisse’s investments mark an exciting new chapter for Pike and provide us with the resources to execute our shared vision for Pike as the leading national provider for energy infrastructure solutions,” said Wyche in a release.

“As the U.S. power grid faces rising demand, aging infrastructure, and increased exposure to extreme weather, Pike is uniquely positioned to help utilities adapt, modernize, and harden their systems,” said Jonathan Garfinkel, a managing partner of TPG Rise Climate.

Moelis & Company served as financial adviser and Ropes & Gray as financing counsel to TPG in relation to this transaction. Simpson Thacher & Bartlett provided legal counsel to TPG and A&O Shearman served as legal advisor to La Caisse. Morgan Stanley & Co. served as Pike’s financial advisor and Kirkland & Ellis served as legal counsel. 

Earlier today, La Caisse issued a statement stating Pike Corporation to accelerate growth through partnership with it, TPG, and Management:

• Partnership will support grid modernization and climate adaptation for U.S. electric utilities

TPG, a leading global alternative asset manager, and global investment group La Caisse (formerly CDPQ), today announced that they have partnered with the management team of Pike Corporation, a leading national provider of turnkey infrastructure engineering and construction solutions for the electrical grid, and signed a definitive agreement to acquire a majority interest in Pike.

TPG will invest in Pike through TPG Rise Climate, the firm’s dedicated climate investing platform, with La Caisse investing alongside TPG for a significant minority interest. J. Eric Pike, third-generation founder and Chairman of Pike, and James R. Wyche, Chief Executive Officer of Pike, also are investing alongside TPG and La Caisse with other existing investors. Following completion of the transaction, the company will continue to be led by Mr. Wyche and the current management team, which combined have over 200 years at Pike. Mr. Pike will continue to serve on the company’s Board of Directors. Terms of the transaction were not disclosed.

“Pike’s legacy as a family-founded company has been defined by safety, integrity and innovative solutions,” said J. Eric Pike, Chairman of Pike. “Our success has been a direct result of the dedication of our team, our long-tenured customers and the support of our investors. I am excited to continue supporting the company with our new partners.”

“TPG’s and La Caisse’s investments mark an exciting new chapter for Pike and provide us with the resources to execute our shared vision for Pike as the leading national provider for energy infrastructure solutions,” said James R. Wyche, CEO of Pike. “I look forward to working with TPG, La Caisse and our other stakeholders to continue helping our customers achieve their goal of providing affordable, reliable energy.”

Founded in 1945, Pike Corporation is among the nation’s leading providers of turn-key infrastructure solutions, including construction and engineering for electric distribution, transmission and substation; renewables and distributed energy resources; and telecommunications services. With approximately 12,000 employees serving over 400 customers, Pike plays a foundational role in building and maintaining critical infrastructure and addressing the demands of aging infrastructure, load growth, and climate-driven stress facing the electric grid.

“As the U.S. power grid faces rising demand, aging infrastructure, and increased exposure to extreme weather, Pike is uniquely positioned to help utilities adapt, modernize, and harden their systems,” said Jonathan Garfinkel, a Managing Partner of TPG Rise Climate. “We see a long-term growth opportunity for grid services providers in the US and we look forward to partnering with the Pike team – well-established leaders in the industry – to advance grid resilience and energy reliability across the country,” added TPG Rise Climate’s Elizabeth Stone Redding.

“Pike helps keep the power on and the grid strong—an essential service for businesses and communities across the United States,” said Martin Longchamps, Executive Vice-President and Head of Private Equity and Private Credit at La Caisse. “As a global investor with significant exposure to the power and energy sector, La Caisse understands the critical role service providers like Pike play in ensuring grid reliability and resilience. Together with TPG, we’re investing in the growth of a proven leader supporting the backbone of the country’s energy network.”

Moelis & Company LLC is serving as financial advisor and Ropes & Gray LLP is acting as financing counsel to TPG in relation to this transaction. Simpson Thacher & Bartlett LLP is providing legal counsel to TPG and A&O Shearman is serving as legal advisor to La Caisse. Morgan Stanley & Co. LLC is serving as Pike’s financial advisor and Kirkland & Ellis LLP is serving as legal counsel. 

ABOUT TPG RISE CLIMATE

TPG Rise Climate is the dedicated climate investing platform of TPG, a leading global alternative asset management firm. With dedicated pools of capital across private equity, transition infrastructure, and the Global South, TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG’s investing professionals around the world, the strategic relationships and insights developed across TPG’s broad portfolio of climate companies, and a global network of executives, advisors, and corporate partners. As part of TPG’s $29 billion global impact investing platform, TPG Rise Climate invests broadly across the climate sector, with a focus on building and scaling leading climate solutions across the following thematic areas: clean electrons, clean molecules and materials, and adaptive solutions.

For more information, please visit www.tpg.com/platforms/impact/rise-climate

ABOUT LA CAISSE

At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.

As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private credit. As at June 30, 2025, La Caisse’s net assets totalled CAD 496 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages. 

This is a significant deal in a US infrastructure company that plays a critical role in maintaining and upgrading the electric grid. 

TPG, a premiere private equity firm, offered La Caisse a co-investment to acquire Pike in a deal that values the company at more than $5 billion (from article above, citing Octus, a credit intelligence and data provider firm).

TPG will invest in Pike through TPG Rise Climate, the firm’s dedicated climate investing platform, with La Caisse investing alongside it. 

Once completed, La Caisse will own a significant minority stake in Pike and along with TPG and management, will help the company grow its operations throughout the United States.

The press release states:

J. Eric Pike, third-generation founder and Chairman of Pike, and James R. Wyche, Chief Executive Officer of Pike, also are investing alongside TPG and La Caisse with other existing investors. Following completion of the transaction, the company will continue to be led by Mr. Wyche and the current management team, which combined have over 200 years at Pike. Mr. Pike will continue to serve on the company’s Board of Directors. 

This is called ensuring alignment of interests, everyone is on board and looking to grow the business while maintaining the same high standards Pike has delivered since it was founded. 

Every part of this deal is impressive offering La Caisse a great opportunity to invest alongside a top strategic partner in a growing firm that plays a vital role in electricity transmission, and will continue to do so for many years to come.

From La Caisse's vantage,  Martin Longchamps, Executive Vice-President and Head of Private Equity and Private Credit sums it up well: 

“Pike helps keep the power on and the grid strong—an essential service for businesses and communities across the United States. As a global investor with significant exposure to the power and energy sector, La Caisse understands the critical role service providers like Pike play in ensuring grid reliability and resilience. Together with TPG, we’re investing in the growth of a proven leader supporting the backbone of the country’s energy network.” 

And it goes without saying electricity transmission is all about clean energy, so it fits well into La Caisse's sustainable investing portfolio.

Lastly, last week, I lambasted Quebec premier Francois Legault for proposing a measure to force La Caisse to invest more in Quebec stating this:

I have no problem with La Caisse's dual mandate but let's not lie to Quebec's population contributing their hard earned money to this organization, there's an opportunity cost investing more in Quebec.

More investments in Quebec means less investments globally at a time when great opportunities will arise at the global level. 

In other words, if there are better opportunities in the US, Europe and Asia, why invest more in Quebec? To make Quebec's billionaires a lot wealthier? (most of whom got huge help from La Caisse)

Yes, we have good businesses in Quebec, I don't have a problem investing in companies we know and understand, but give me a break with this "Quebec Power" nonsense, we are nothing compared to the global economy and the sooner we realize this, the better off we will be over the long run.

In short, when it comes to investing in Quebec or co-investing alongside strategic partners like KKR, Blackstone and many others in incredible global deals, hands down I would choose the latter.

And La Caisse does both well, so let them do their job and stop interfering with their investment policy, you are going to bungle it up just like "la loi 2" is going to bungle up Quebec's healthcare.

This deal with TPG just proves my point, if there are better opportunities outside Quebec, La Caisse needs to evaluate them and seize them if they offer Quebec pension contributors and beneficiaries better long-term risk-adjusted returns.

Below, a clip demonstrating Pike's suite of services (from three years ago, they're up to 12,000 employees now and growing fast). As you can read, the company does a lot more than electricity transmission, and has a dedicated telecom and gas services team.

Rian Howlett , Karen Friar and Ines Ferré of Yahoo Finance report the Dow, S&P 500, Nasdaq close mixed to cap a volatile week as Fed cut in doubt:

US stocks recovered from earlier losses on Friday, battling back from Wall Street's steepest sell-off in over a month as investors await more economic data in the coming days ahead of the Federal Reserve's next rate decision in December.

The Dow Jones Industrial Average (^DJI) slipped around 0.6%. But the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) came back from being deeply in the red, with the S&P falling below the flatline, and the Nasdaq gaining 0.1%.

Wall Street's previous bruising session saw the major indexes log their sharpest one-day declines in over a month. Tech stocks saw their earlier losses shrink mid-morning Friday after AI concerns drove an exodus from riskier assets to less hotly valued sectors. Still, Tesla (TSLA) shares remained under pressure and broke below $400 before going green. Nvidia (NVDA) shares also rebounded to turn positive.

Bitcoin (BTC-USD) also continued to suffer, falling below $96,000 for the first time in over six months. The cryptocurrency is down over 20% from its peak in October.

The mood is unsettled as worries grow that the Federal Reserve will slow its pace of policy easing, given the increasingly hawkish tone taken by its officials. Traders now see less than 50% odds of a quarter-point rate cut next month, down from about 95% a month ago. Minneapolis Fed president Neel Kashkari became the latest to lose appetite for rate cuts as he flagged "resilience" in the US economy and continued concerns over inflation.

Policymakers lack insight into price pressures as well as the jobs market after the record six-week federal shutdown. On Friday the Bureau of Labor Statistics said the September jobs report will be released next Thursday, Nov 20. 

In a nod to price pressures, President Trump is preparing to make substantial cuts to tariffs to bring down high food costs, a concern for voters in recent state and local elections. Several trade deals with Argentina, Brazil, and other Latin American countries also aim to make the likes of bananas and coffee more affordable.

The recent sell-off is not a 'tech wreck', but an 'AI reckoning'

Tech's recent sell-off hasn't changed the long-term thesis on AI, says one Wall Street strategist.

"What’s happened recently in the market isn’t even close to a tech wreck, but it may be a bit of a tech reckoning," said Daniel Skelly, head of Morgan Stanley's Wealth Management Market Research & Strategy.

"Given how much AI-related stocks have rallied in recent months, some retrenchment is perfectly normal," he added. "The recent volatility hasn’t altered the longer-term bullish case for the AI leadership."

Skelly said health care remains one of the market’s key overlooked stories.

"Even though it’s been the S&P 500’s strongest sector over the past three months, valuations are still attractive."

The S&P 500 Health Care ETF (XLV) has rallied 10% since late September. Year-to-date its up 10%.

Sean Conlon and Pia Singh of CNBC also report the Nasdaq closes higher, snapping three-day losing streak as tech stocks recover some ground:

The Nasdaq Composite rebounded on Friday as investors bought up shares of key technology stocks a day after the group led Wall Street to its worst day in more than a month.

The tech-heavy Nasdaq gained 0.13% to finish at 22,900.59, snapping a three-day losing streak. The S&P 500 finished near the flatline, down just 0.05% at 6,734.11, while the Dow Jones Industrial Average lost 309.74 points, or 0.65%, to settle at 47,147.48. The three indexes bounced back significantly from their lows earlier in the day, which had the Nasdaq and S&P 500 down 1.9% and about 1.4%, respectively. The Dow had fallen almost 600 points, or roughly 1.3%.

The tech trade gained some ground after coming under pressure in recent days. Leading artificial intelligence players Nvidia and Oracle both reversed course from their losses seen in the previous session, as did Palantir Technologies and Tesla, both of which saw a drop of more than 6% in the prior day. The Technology Select Sector SPDR Fund (XLK) closed up 0.5% on Friday, making up some of its 2% decline from Thursday.

Major U.S. indexes on Thursday posted their worst one-day performance since Oct. 10. The 30-stock Dow lost about 800 points, taking back gains seen in Wednesday’s session when it crossed the 48,000 level. The Nasdaq plummeted more than 2%, as technology giants came away battered.

“We’re kind of switching back and forth between this risk-on [and] risk-off type of a trade,” said Brian Mulberry, client portfolio manager at Zacks Investment Management. “I think people are looking to maybe reposition going into the end of the year, into 2026, just knowing the concentration that most people have built up because of the solid performance from these technology companies.”

“There will be somewhat of a floor, I think, in this volatility. We just expect that you’ll probably have more of these 1% to 2% moves up and down till close to the end of the year just as people reposition and de-risk their portfolios,” he also said.

After the week’s wild swings, Nasdaq ended down 0.5% for the period. However, both the S&P 500 and the Dow held on to gains, up 0.1% and 0.3%, respectively.

Concerns about the AI trade have emerged more seriously this week, with the recent wipeout in once-hot cloud stock Oracle further spooking investors about elevated tech valuations, a massive surge in debt financing and soaring AI capex plans. To be sure, Oracle’s growth is uniquely more reliant on its cloud deal with OpenAI and the company has far less cash compared to hyperscalers.

“AI is truly testing the limits of Wall Street spreadsheets right now,” David Krakauer, vice president of portfolio management at Mercer Advisors, told CNBC, adding that investors pricing in “so much of this future growth that they really can’t measure yet” just spurs an “environment of swings.” “The valuations are so stretched, and any little movement in expectations on either profits or interest rates is going to have a bigger and bigger effect.”

Mounting unease about the Federal Reserve’s upcoming interest rate decision exacerbated the existing pressure on the market this week. Traders are now pricing in a less than 50% chance that the central bank will cut its benchmark overnight borrowing rate by a quarter percentage point during their December meeting, which is lower than the 62.9% likelihood that markets priced in earlier this week and 95.5% chance a month ago, per the CME FedWatch Tool.

Investors are counting on another rate cut in December to revive the economy, as well as risk-taking on Wall Street. But some Fed members are growing concerned that inflation is too sticky to warrant another rate decrease this year.

The U.S. government shutdown, which was the longest in history, ended Wednesday evening after stretching on for more than six weeks. That development had been expected to end a period of time where investors were operating without important economic data. Instead, it has raised new questions. White House press secretary Karoline Leavitt suggested that some economic data that was due out during the impasse might never be released.

This week was mostly a continuation of last week when tech shares got clobbered.

Will the Fed cut again? My money is on "yes" but that's not what is driving the market now. 

As I stated last week, November 15th is when 13Fs for funds become available and you always see this volatility right before positions are made public.

You had a huge run-up in so many AI related stocks that it's only normal to see a pullback.  

And all this volatility is exactly what large hedge funds crave, they can buy the dips going into year-end.

What are they buying? I'm pretty sure they loaded up on Oracle shares at the open today:

When you see an intraday reversal like that on a Friday, something is up. That company reports earnings on December 8th so keep an eye on it.

But not all AI stalwarts are feeling the love. Meta shares are down almost 20% in the last 2 weeks after it reported as investors ask "where's the AI beef?":

 

The concern is hyperscalers like Meta are spending way too much on AI, data centers, and not producing the AI revenues yet.

Whenever I see these big dips, I see them more as an opportunity to buy quality growth stocks at a discount.

It doesn't mean the share price can't go lower as the weekly chart remains bearish but I'm not in the camp that the AI bubble is over, at least not yet.

Don't forget, over 80% of portfolio managers are underperforming this year, so FOMO will kick in, all it takes is one good week and these stocks will rip higher.

What about Christmas 2018? Can we get another disaster like that? It's possible but unlikely, the Fed learned its lesson back then.

Anyway, as I stated above, 13Fs all become available next week, I'll be covering top funds' quarterly activity and I'm always suspicious when I see downside volatility before they become public.

One thing I can share with you is Warren Buffett’s Berkshire Hathaway revealed a new position in Alphabet, making the Google parent the conglomerate’s 10th largest equity holding at the end of September, according to a regulatory filing:

Berkshire disclosed a $4.3 billion stake in Alphabet at the end of the third quarter, a surprising move given Buffett’s traditional value investing philosophy and reluctance toward high-growth, tech names. While Berkshire has owned Apple for years, Buffett has called it more of a consumer products company than a pure tech play.

The purchase was also likely made by Berkshire investment managers Todd Combs or Ted Weschler, who have been more active in technology names. One of them initiated an investment in Amazon back in 2019, and Berkshire still owns $2.2 billion worth of the e-commerce shares.

Alphabet has been the market’s standout winner this year with shares rallying 46%. Strong demand for artificial intelligence has driven solid momentum in Alphabet’s cloud business.

Buffett previously admitted that he “blew it” by failing to invest early in Google even though he had insight into its advertising potential. Berkshire’s auto insurance unit Geico was an early customer of Google, paying the search engine 10 bucks every time someone clicked on the ad at the time.

“I had seen the product work, and I knew the kind of margins [they had],” Buffett said in 2018. “I didn’t know enough about technology to know whether this really was the one that would stop the competitive race.”

Google shares recently hit a 52-week high before the latest tech selloff. It's fair to say they will likely be among the big AI winners once this is all over. From a trading perspective, this is a good move (shares are up 4% after the close after Berskshire made the disclosure).

Alright, let me end by sharing this week's top performing US large cap stocks and the worst-performing ones (see full list here and here): 

 

Below, Tom Lee, Fundstrat, joins 'Closing Bell' to discuss what's happening with the crypto trade, if crypto treasuries become more favored than the actual crypto and much more.

Next, Requisite Capital’s Bryn Talkington and Northwestern Mutual’s Matt Stucky join 'Closing Bell' to discuss the latest news affecting markets.

Third, Paul Hickey, Bespoke Investment Group co-founder, joins 'Power Lunch' to discuss the recent equity market action, why the air left some of the megacap tech stocks and much more.

Fourth, 'Fast Money' traders talk their takeaways from this week's market action.

Lastly, Jeff Kilburg, KKM Financial founder, joins 'The Exchange' to discuss Kilburg's thoughts on recent equity selloffs, the two other stocks Kilburg favors and much more.