Opening Bell: 9.1.26

Stocks Decline to End August as War Fears Persist [WSJ]West Texas Intermediate crude futures, the U.S. benchmark for oil, rose 2.8% to $85.76 a barrel, after U.S. forces attacked two Iranian rocket launchers in the Strait of Hormuz Sunday, dampening hopes after weeks without American strikes that the war with Iran could soon draw to an end….“There’s plenty for investors to worry about,” said Peter Cardillo, chief market economist at Spartan Capital Securities.Still, the major indexes ended August with gains, with the Dow notching its best five-month run since November 2024. Shein’s Lackluster Debut Shows a Fast-Fashion Model Left Behind [NYT]Shares in Shein fell 10 percent at one point before clawing back to close near its offering price, a humbling debut for a company once valued at $100 billion but now worth about a quarter of that. Its offering came after a wave of Chinese A.I. companies went public in Hong Kong and Shanghai, and years after Shein tried, and failed, twice in its efforts to list in New York and London amid opposition from officials and activists over working conditions at its facilities.SEC Presses Investment Firms to Prove They Have Access to Shares in Hot Startups [WSJ]SEC examiners have been asking registered investment advisers for proof that their SPVs own or have exposure to the shares in private companies that they claim to…. SPVs operate under few regulations, and the SEC has the authority to check the funds that are held by registered investment advisers. Some SPVs are offered by firms that are technically outside of the SEC’s purview, though if there is an issue of fraud, the SEC has authority to investigate and take action.Hedge Fund Disclosure Deadline Delayed Again by SEC, CFTC [Bloomberg]The disclosures are meant to inform officials about the market conditions that could lead to systemic financial risk, such as counterparty risk, sudden margin calls or any significant adverse event impacting private funds…. The latest delay comes after hedge fund Situational Awareness saw its highly-leveraged equities trades go sideways in July. During that time, the artificial intelligence-focused fund went from $45 billion in assets under management to about $10 billion. Citadel Says Marshall Wace ‘Stonewalling’ in Spat Over Shatz [Bloomberg]A New York judge ruled in June that Citadel could subpoena records from Marshall Wace as part of a dispute in arbitration with [Daniel] Shatz, who claims he was denied deferred compensation from Ken Griffin’s firm. Citadel claims Shatz stole confidential information in preparation for his 2024 move to Marshall Wace…. On Tuesday, Citadel advised the judge of an email it received from the panel arbitrating the dispute with Shatz. The panel was “extremely frustrated by the delay in resolving the issues related to the Marshall Wace subpoenas” and “expects compliance with those subpoenas,” which may uncover “relevant evidence….”Ex-BlackRock employee sues for $12M in case that could unveil firm’s secretive pay structure [N.Y. Post]Neal Dignum, a former director in BlackRock’s Long Term Private Capital fund, is accusing BlackRock of failing to pay a single cent of the carried interest it promised him as part of his pay package…. To keep the complaint permanently sealed from the public, BlackRock would need to argue that it contains “trade secrets, confidential business information, or proprietary information,” the filing said – and if it fails to do so, its compensation structure could be revealed in court.