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.

Mathieu Dion of Bloomberg News reports Quebec premier pushes Caisse to invest at home:

Quebec Premier Francois Legault said he wants the province’s pension fund to invest more locally, including making bets in the manufacturing sector, as Canada adjusts to a new reality of U.S. trade barriers.

The Caisse de Depot et Placement du Quebec, Canada’s second-largest pension manager, is planning to have $100 billion of its funds invested in the French-speaking province by next year — about 20 per cent of its current net assets and a similar proportion to the previous year. But it’s not enough for Legault, who has been running the province since 2018.

A new “ambition target” will be set for 2030, according to a document entitled “Quebec Power: Answer to a New World Context” that describes his economic vision.

“The Caisse de depot is doing more than it did seven years ago, but they need to do even more,” Legault said during a presentation Monday, adding that the government is discussing the issue with the institution’s management.

In an interview with Montreal-based news outlet La Presse, he went further, saying La Caisse must take “calculated risks” in sectors such as manufacturing and critical minerals.

La Caisse, which had $496 billion under management as of June, has a dual mandate to produce returns and contribute to Quebec’s economic development, but the law establishing it states that it must act independently.

“We clearly have a competitive edge here — we know the market, we know our companies and we can deploy capital across the full spectrum of financing solutions,” a spokesperson for La Caisse said in an emailed statement.

“That said, investing the hard-earned money of Quebecers means we must keep responsibility front of mind. We need businesses to launch projects that benefit the economy and at the same time help protect and grow Quebecers’ retirement savings.”

Legault’s nationalist party, the Coalition Avenir Quebec, has collapsed in public opinion polls about a year before a likely provincial election. The premier is now attempting a series of policy moves to try to boost the party’s popularity, including a controversial battle to make doctors more productive and now a broad vision for economic growth. 

What a lovely topic to discuss on hump day.

What are my thoughts on Legault's idea to push La Caisse to invest more in our province to bolster "Quebec Power"?

To be blunt, just like his party's new health care initiative headed by current health minister and former La Caisse senior executive Christian Dubé, c'est de la bullshit tabernac!  (it's bullshit goddamn it!).  

Why in God's name is Quebec's government forcing La Caisse which already invests more than any other large Canadian and global pension fund right in its own backyard to invest more in Quebec?

Because we are going to counter Donald J. Trump's stupid tariffs and win? Are you kidding me? 

This is precisely the reason why I hate when politicians interfere with pension funds, they have no clue whatsoever and they typically make a bad situation much worse with their asinine policies.

Let the experts at La Caisse decide how much to invest in Quebec and how much to invest globally. 

No doubt, their Quebec portfolio headed by Kim Thomassin has done well over the last 5 years but if we head into a global recession, watch out, that portfolio is going to get dinged hard! 

I 100% guarantee a bad outcome if La Caisse invests more in Quebec than it has already pledged.

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 ave 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.

The optics of this is terrible, makes La Caisse look like an extension of the Quebec government.

La Caisse is not Investissements Quebec or Hydro Quebec, it has to have independent governance or else you will weaken the organization and make it the laughingstock on the Maple 8 funds. 

But Legault and Dubé don't get it, they will learn the hard way when voters kick them out of office.

My message to politicians is simple: "stay in your lane and let experts decide where to invest hard earned pension contributions."

Lastly, to our dear health minister, you might have had a great reputation at La Caisse but you sir will go down in history as the worst health minister Quebec has ever known. Point final. (watch, I predict Legault will eventually throw Dubé under the bus)

Freschia Gonzales of Benefits and Pensions Monitor reports Canada opens door to airport privatization, sparking pension fund interest: 

Canada’s airports are valued in the billions and generate over $120bn in annual economic output, supporting nearly 436,000 jobs.  

According to the Financial Post, the federal government is now signaling openness to privatization and new private-sector partnerships, which may soon lead to a dramatic shift in airport ownership and investment opportunities. 

The latest federal budget, the first from Prime Minister Mark Carney, states that the government will “consider options for the privatization of airports” and explore “new ways to attract private sector investment,” as reported by the Financial Post.  

This move is part of a broader strategy to unlock more economic potential from Canada’s airports and to jump-start private investment in nation-building infrastructure projects.  

The government’s initial steps include negotiating lease extensions with not-for-profit airport authorities, enabling more economic development on airport lands, and reviewing ground lease rent formulas. 

The groundwork for these initiatives was laid in the previous government’s economic update, which appointed former Bank of Canada governor Stephen Poloz to lead a task force focused on boosting domestic investment by large pension funds.  

However, as per the Financial Post, earlier policy statements had stopped short of explicitly endorsing privatization, despite previous studies and reports, such as the 2016 Credit Suisse valuation commissioned by the Trudeau government. 

Industry experts see renewed potential in this approach. 

“It’s encouraging that the government is open to airport privatization, as private investors, including Canadian pension funds, can provide the capital needed for airport improvements and expansions,” said Andras Vlaszak, director in global infrastructure advisory at KPMG Canada, as cited by the Financial Post. 

Vlaszak noted that such a move could allow the government to recycle capital into higher-growth projects. 

The government has also committed to direct investment in airport infrastructure, allocating $55.2m over four years, plus $15.7m ongoing, to support safety-related projects at local and regional airports, according to the Financial Post.  

This funding, delivered through the Airports Capital Assistance Program, includes a priority runway extension at the Îles-de-la-Madeleine Airport. 

Despite these efforts, private investment in airport development has so far been muted.  

In March, Transport Canada outlined ways for private investors to participate in airport land development, such as commercial subleases and minority stakes in share-capital subsidiaries.  

Some pension officials view these measures as positive, but others maintain that only a controlling stake would meet their investment criteria.  

Canadian pension funds, including the Ontario Teachers’ Pension Plan Board, the Caisse de dépôt et placement du Québec, and PSP Investments, have a history of investing in international airports and have expressed interest in expanding their domestic infrastructure portfolios, as reported by the Financial Post. 

The evolving landscape for Canadian airports comes at a time when trade diversification and new economic realities are reshaping the country’s infrastructure needs.  

As noted by the Financial Post, airports are central to Canada’s growth and trade diversification, and the current environment presents significant opportunities for institutional investors to play a pivotal role in the sector’s future.  

So, will the federal government finally privatize Canadian airports allowing Canada's large pension funds to invest?

I hope so and have been openly advocating for doing so but some experts have contacted me privately telling me they're not convinced it's going to happen.

Why? Basically airports are cash cows for the federal government, generating huge revenues every year and they have hardly invested in them over the last ten years (never mind the REM extension at Montreal's airport).

One expert shared this with me:

From the government perspective, airports are a very lucrative perpetuity. It’s guaranteed revenues with 0 expense. The government made very little investment in the 1930, 40’s and some in the 50’s, bar YMX in the 70’s. Then all the improvements were done by LAA’s (local airport authorities) since 1992, still the government is cashing 12% on gross revenue. What’s the value of that, no cash down, no debt, no improvement cost and $0.12 for every dollar of airport revenue. And on top of this, assets have to be maintained at state of the art standard. The plus value is through the roof when you look at the investments made in YVR, YYC, YEG, YYZ,YUL and smaller airports. 

If this expert's figures and assertions are right, it helps explain the reluctance of the federal government to partially or fully privatize airports.

Still, my argument is if the government knows how much revenues airports are generating, it can easily ascribe a value to those future cash flows and sign a super long-term lease with pension funds to control them.

Of course, in a fair and transparent bidding process, it would need to open this up to international funds as well and that can create political backlash.

There are many details to be ironed out before the federal government can move forward to privatizing airports, and as the article states pension funds prefer controlling interests.

And our airports might generate a lot of revenues but they're not in good shape.

Take Montreal's Trudeau airport, it's a complete embarrassment. 

One expert shared this:

YUL is indeed a shamble because improvements have been reduced to minimum and judged too expensive, now, no matter how rich any investor is, rebuilding YUL to be an airport again will take years and years, because the magnitude of the project is overwhelming…. Ground side access plans were drawn in the early 2000 and kept on being postponed and postponed. Soon enough, ground side improvement is going to be like LHR R3

I agree, I'd shut down Montreal's airport and build residential housing there and I'd move to reopen Mirabel airport. Unfortunately, it's too late, and I fear we we are stuck with this abomination of an airport for better or for worse.

Running airports is no easy business, Canadian pension funds use an operating company to do it for them and their investments in airports is only as good as the expertise in those operating companies.

For example, one expert shared this with me on PSP and its airports operator, Avi Alliance:

The platform PSP has in place means that PSP is the financial partner and Avi Alliance is the operating partner. PSP can appoint board members but these board appointments are external experts because PSP doesn’t have the knowledge in house. The problem with these platforms is that they work just fine as long as additional capital is allocated over time. A maturing plan and/or other asset allocation decisions lead to friction as a partner like Avi Alliance would like to continue to grow. Infrastructure is still in demand but I have seen this happening with other platforms. I am not sure whether the government thinks about this, but perhaps they should. By the way, I am not saying that the pension funds should not take over these assets; quite the opposite, these brownfield assets fit their mandate well.

Lots of great insights surrounding this discussion and I look forward to seeing if the federal government does move ahead to finally partially or fully privatize airports. 

I remain hopeful but skeptical and need to see the details in writing.

Below, Airports aren’t just runways and terminals—they’re bustling business hubs designed to generate revenue from multiple streams. In this video, we dive into the airport business model, exploring how airports earn money from landing fees, passenger charges, retail concessions, parking, and more.

Discover the strategies behind airport pricing, how airlines and passengers help drive profits, and the challenges airports face in today’s competitive travel industry. Whether you're a frequent flyer or simply curious about the business of air travel, this video will give you an inside look at what makes airports tick.

Pablo Mayo Cerqueiro and William Mathis of Bloomberg report Canada Pension Plan to raise $1.36 Billion in EDP share sale: 

The Canada Pension Plan Investment Board, one of the world’s largest pension funds, is set to raise about €839 million ($1.359 billion) from the sale of its 5.4 per cent stake in Portuguese energy company EDP SA.

CPPIB will price the sale at €3.729 ($6.04) each, the bottom of the marketed range, in an overnight placing arranged by Goldman Sachs Group Inc., according to terms seen by Bloomberg News. The offering of about 225 million shares was multiple times oversubscribed at that level, the terms show.

China Three Gorges Corporation is EDP’s top shareholder with 21.4 per cent of capital with Oppidum Capital S.L. holding 6.82 per cent and Blackrock Inc 6.08 per cent, according to the utility’s website.

Shares in EDP fell 9.7 per cent last week after it reported lower profit and narrowed its guidance for the full year. The company announced a new strategic plan to spend €12 billion ($19.44 billion) between 2026 and 2028 to expand its wind and solar energy projects as well as power networks in Iberia.  

So what is this all about? Exactly four years ago, CPP Investments reached 5% qualified shareholding in EDP:

Lisbon, December 10th, 2021: Pursuant to the terms and for the purposes of articles 17 and 244 of the Portuguese Securities Code and of the CMVM Regulation no. 5/2008, EDP - Energias de Portugal, S.A. (EDP) is providing the following information to the market:

On December 9th, 2021, Canada Pension Plan Investment Board (“CPPIB”) notified EDP, in accordance with article 16 of the Portuguese Securities Code, that it had reached a qualified shareholding correspondent to 5.0116% of EDP’s share capital and of the respective voting rights, directly held. The 5% threshold was crossed by such company on December 3rd, 2021. Previously CPPIB’s overall position was 2.0094%.

Information regarding the chain of controlled undertakings and voting rights is disclosed in the attachment.

EDP – Energias de Portugal, S.A. 

A year later, EDP Renewables and Engie’s joint venture partnered with CPP Investments to develop a floating offshore project in California:

London, UK, 9th December 2022 – Ocean Winds (OW) and the Canada Pension Plan Investment Board (CPP Investments), through their 50/50 offshore wind joint venture Golden State Wind, were awarded a 32,500 hectares lease area by the U.S. Bureau of Ocean Energy Management (BOEM) in the Morro Bay area off the central coast of California.

The lease area awarded is one of five sites off the coast of California that was the subject of an auction held by the U.S. Bureau of Ocean Energy Management (BOEM). This auction is particularly notable as it is the first floating offshore wind lease sale in the country, and the first offshore wind lease sale of any kind, on the West Coast.

OW is already developing around 4GW of offshore project in the Northeast of the U.S., Mayflower Wind off the New England coast, and Bluepoint Wind off the New York and New Jersey coasts. The latest is the project being developed out of the seabed lease area awarded during the New York Bight auction earlier this year.

Bautista Rodriguez, CEO of Ocean Winds said: “As a pioneer in floating offshore wind and firm believer in its capabilities to produce large capacity of clean energy and create local opportunities around the world, Ocean Winds is very proud to have been awarded a new project during this first floating offshore wind auction in the U.S. We are committed to bringing the country and California closer to meeting their clean energy goals, while building a new domestic industry, creating jobs, and boosting the local economy.”

Ocean Winds has more than 10 years of experience in floating offshore wind, most notably through the development and operation of Windfloat Atlantic, the world’s first fully commercially operational floating offshore wind farm. OW has a substantial portfolio of floating projects in Europe and South Korea and is ideally positioned to bring this technology to the Golden State.

When fully built out and operational, Golden State Wind’s lease area can accommodate approximately 2 GW of offshore wind energy, generating enough energy to power the equivalent of 90000 homes. This will bring the U.S. and California closer to meeting their clean energy goals of 15 GW of floating offshore wind generation by 2035 in the U.S. and 5 GW by 2030 in California – building a new domestic industry, creating jobs for Californians, and boosting the local economy.

As part of OW and CPP Investments’ winning bid, Golden State Wind committed to invest in workforce development and supply chain initiatives and to work closely with key local stakeholders to maximize the benefits to California from the emerging offshore wind industry. 

I invite you to read more about Golden State Wind here. Let me give you the gist of it:

Golden State Wind is a joint venture of Ocean Winds (OW) and Reventus Power, managed by OW.

OW is a global offshore wind company with more than 10 years of experience in the floating offshore wind sector. Created as a 50/50 joint venture of EDP Renewables and ENGIE, OW develops, builds, and operates offshore wind farms in communities around the world, based on our belief that offshore wind energy is an essential part of the global energy transition. OW, headquartered in Madrid, currently has 17 offshore wind projects in 8 countries and our total portfolio of offshore wind gross capacity in operation, under construction, or in advanced development is currently 18.8 GW. For more information, please visit www.oceanwinds.com. 

Reventus Power originates and invests in the development and long-term management of offshore wind projects globally. As a portfolio company of CPP Investments’ Sustainable Energies group, Reventus invests flexibly, and at scale, across the asset lifecycle. Reventus invests alongside strategic partners, bringing deep in-house technical, financial, and commercial expertise to projects across three continents. The team is proven in delivering value through the realisation of high quality offshore wind projects around the world. For more information, please visit www.reventuspower.com/.

In 2023, CPP investments bet big on green hydrogen, making a 130 million euro ($143 million) investment and the purchase of a majority stake in a three-year-old Dutch firm, Power2X.

Power2X's current projects include a green hydrogen and ammonia development in Portugal and a solar power and green hydrogen project in Spain. 

At the time, Portugal's largest utility EDP and oil and gas company Galp Energia were both planning to build green hydrogen plants in the same industrial hub of Sines. 

Why am I sharing all this with you?

Because EDP is huge and so is EDP Renewables in North America. 

Clearly CPP Investments made a strategic investment in this company to strengthen ties team up with them on joint ventures so their Sustainable Energy Group which was created back in 2021 can benefit from their expertise.

CPP Investments is now selling its 5.4% stake in EDP, raising $1.35 billion.  

Interestingly, Goldman is taking care of the transaction which was oversubscribed, which shows you there is strong investor interest in EDP.

I wouldn't read too much into this sale, all part of CPP Investments' portfolio management.

They're raising liquidity to invest in other opportunities. 

Below, During Capital Markets Day, on November 6th,EDP presented its strategic roadmap for the coming years, reinforcing its commitment to delivering clean, affordable, and secure energy to communities across the globe. With decades of experience in the renewables sector, EDP will continue to invest in more resilient grids, flexible clean technologies, and digital innovation—driving sustainable value for customers, partners, and shareholders.

Also, EDP Renewables North America LLC (EDPR NA), its affiliates, and its subsidiaries develop, construct, own, and operate wind farms, solar parks, and energy storage systems throughout North America. Headquartered in Houston, Texas, with 58 wind farms, 10 solar parks, and eight regional offices across North America, EDPR NA has developed more than 9,400 megawatts (MW) and operates more than 8,400 MW of onshore utility-scale renewable energy projects. 

With more than 1,000 employees, EDPR NA’s highly qualified team has a proven capacity to execute projects across the continent. Very impressive firm.