Welcome to FT Asset Management, our weekly newsletter on the movers and shakers behind a multitrillion-dollar global industry. This article is an on-site version of the newsletter. Subscribers can sign up here<\/a> to get it delivered every Monday. Explore all of our newsletters here<\/a>.<\/p>\n Does the format, content and tone work for you? Let me know: emma.dunkley@ft.com<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n One thing to start: <\/strong>Welcome to your special year-end edition of FT Asset Management. We\u2019ve pulled out two themes that dominated in 2025. Where should we focus our coverage next year? Email me: emma.dunkley@ft.com. <\/em>Have a great break, folks. We will resume service on January 12. <\/p>\n And one audio thing: Fidelity Investments<\/strong> has quietly cemented its status as one of the world\u2019s top financial powerhouses. But what is the secret sauce behind the success of this private company led by Abigail Johnson<\/strong>? We take a deep dive in this episode of Behind the Money<\/em><\/a>, <\/em>available on your podcast app of choice here<\/a>. <\/p>\n Warren Buffett<\/strong>, dubbed the \u201cOracle of Omaha\u201d and arguably the world\u2019s most famous investor, announced his retirement<\/a> this year.<\/p>\n The 94-year-old, who built up the financial juggernaut Berkshire Hathaway<\/strong> over six decades, will pass the baton to Greg Abel<\/strong> at the start of 2026.<\/p>\n The death of Buffett\u2019s longtime friend and business partner Charlie Munger<\/strong> in 2023 had already increased speculation<\/a> about when Buffett might step down. <\/p>\n Buffett took a further step back when he said in November that he was \u201cgoing quiet\u201d<\/a>, noting that Berkshire\u2019s next annual letter, which is widely followed by legions of retail and institutional investors, would be written by someone else.<\/p>\n Abel<\/a> will certainly face a tricky task<\/a> leading the company after Buffett. The challenges are twofold: maintain the culture that Buffett and Munger instilled in Berkshire<\/a> while putting the group\u2019s war chest \u2014 now at a record high \u2014 to work.<\/p>\n The new guard is now preparing to take over at the conglomerate, but without Todd Combs<\/strong>, one of Buffett\u2019s prot\u00e9g\u00e9s, who is leaving<\/a> Berkshire for a new role<\/a> at JPMorgan Chase.<\/strong> <\/p>\n JPMorgan rejected the notion that Combs could be a candidate to follow the bank\u2019s boss Jamie Dimon<\/strong>, 69, in Wall Street\u2019s highest-profile \u2014 and slowest-moving \u2014 succession race<\/a>.<\/p>\n The high-profile collapses of car parts maker First Brands Group<\/strong> and subprime auto lender Tricolor Holdings<\/strong> within weeks of each other have had knock-on effects this year.<\/p>\n Certain funds with exposure to First Brands took a hit. UBS O\u2019Connor<\/strong>, a private credit and commodities specialist, revealed that one of its investment vehicles was<\/a> exposed and ended up winding it down<\/a>.<\/p>\n The Wall Street bank Jefferies was also involved in the saga through its asset management division\u2019s<\/a> Point Bonita Capital. <\/strong>The investment bank issued an open letter in which top executives said it could withstand any losses it might incur.<\/p>\n The collapse of First Brands, which also drew in the likes of hedge fund Millennium Management<\/strong>, even prompted<\/a> the US Justice Department to open an investigation.<\/p>\n The aftershocks were felt in Europe as well. In the UK, the financial watchdog noted that it was closely monitoring<\/a> the collapse to assess if the failed US companies that relied heavily on asset-based lending indicated wider problems in fast-growing private credit markets.<\/p>\n More broadly, the saga led financial stalwarts to sound the alarm<\/a> on the private debt boom, with Jim Chanos<\/strong>, one of Wall Street\u2019s best-known short sellers, warning that First Brand\u2019s bankruptcy could augur a wave of corporate collapses.<\/p>\n \u201cI suspect we\u2019re going to see more of these things, like First Brands and others, when the cycle ultimately reverses,\u201d Chanos told the Financial Times, \u201cparticularly as private credit has put another layer between the actual lenders and the borrowers.\u201d<\/p>\n Some firms appeared to be prescient, though. Private equity firm Apollo<\/strong> arguably spotted the red flags<\/a> at First Brands ahead of time, and last year began shorting the debt of the car parts firm.<\/p>\n Hedge fund Millennium valued at $14bn in minority stake sale talks<\/a><\/p>\n London becomes \u2018quant\u2019 powerhouse as traders rake in revenues<\/a><\/p>\n BlackRock awards Larry Fink carried interest incentive for first time<\/a><\/p>\n Hedge funds hit with steepest margin calls since 2020 Covid crisis<\/a><\/p>\n Wealthy Americans pour record sums into private credit funds<\/a><\/p>\n Donald Trump exposes US retirees to new world of risk with 401k order<\/a><\/p>\n Dutch pension funds set to sell \u20ac125bn of government bonds<\/a><\/p>\n Rachel Reeves to cut cash Isa limit to \u00a312,000 in Budget<\/a><\/p>\n Chinese investors privately take stakes in Elon Musk\u2019s companies<\/a><\/p>\n BlackRock and Vanguard lead \u2018super league\u2019 dominating Europe<\/a><\/p>\n Can Fidelity keep its grip on America\u2019s investments?<\/a><\/p>\n The hedge fund billionaire aiming to be king of Queens<\/a><\/p>\n Can hedge funds prosper without their star trader founders?<\/a><\/p>\n The remarkable redemption of St James\u2019s Place<\/a><\/p>\n Can the world\u2019s largest listed hedge fund rebound?<\/a><\/p>\n How top hedge funds can pay traders $100mn<\/a><\/p>\n Active ETFs: a lifeline for Europe\u2019s struggling asset managers?<\/a><\/p>\n BlackRock tried private credit once before. Will this time be better?<\/a><\/p>\n How secretive hedge fund Magnetar went all in on AI<\/a><\/p>\n World\u2019s best performing sovereign wealth fund bets on Europe over US<\/a><\/p>\n Get into the festive mood at Kew Gardens<\/strong> in London, with a trail displaying<\/a> creations from world-renowned artists, lighting up Kew\u2019s landscapes. The winter exhibition includes illuminations, shimmering tunnels of light and, of course, Father Christmas<\/strong>.<\/p>\n Selected dates until January 4<\/em><\/p>\n Thanks for reading. If you have friends or colleagues who might enjoy this newsletter, please forward it to them. Sign up here<\/a><\/p>\n We would love to hear your feedback and comments about this newsletter. Email me at emma.dunkley@ft.com<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n The Week Ahead<\/strong> \u2014 Start every week with a preview of what\u2019s on the agenda. Sign up here<\/a><\/p>\n Working It<\/strong> \u2014 Everything you need to get ahead at work, in your inbox every Wednesday. Sign up here<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\nWarren Buffett announces his retirement<\/span><\/h2>\n
The collapse of First Brands<\/span><\/h2>\n
10 of the best stories <\/span><\/h2>\n
10 of our best longer reads<\/span><\/h2>\n
And finally<\/span><\/h2>\n
Recommended newsletters for you<\/h3>\n
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