Category Archives: Investment management

Can’t Do America: Kick the Can Approach to Public Pension Fund Crisis, Even Though Canada Cleaned Up Its Mess

Why the US is certain to ignore the Canadian roadmap out of its public pension fund mess….and it’s not just because exceptionalism.

Saudi Aramco’s Landmark IPO Is Costing The Kingdom Billions

How the Saudi Aramco IPO has become a financial millstone.

The Mnuchin-Powell Affair Over the Fed’s “Special Purpose Vehicles” in Dollars & Effects

The Treasury and Fed set up junk-buying SPV programs The unwind is oddly controversial given that they never should have been created.

A Letter from Nanea to Yves Smith About CalPERS’ Strange $1.5 Billion Deal with LongRange Capital

CalPERS defied its board by staking a startup fund with a cool $1.5 billion without approval. And on top of that, the deal looks lame.

2020 “Globie”: The Carry Trade

A recent book focuse on the role of the carry trade in increasing financialization and instabilty.

To Beat China, US Should Tax Ray Dalio Out of Existence

A recap of the recent China “Bund Summit,” which included discussion of China’s continuing need for foreign capital.

Goldman Gets Off Easy in 1MDB Scandal Despite Further $2.9 Billion in Payments, Criminal Charge Against Malaysian Sub

Despite the big numbers, Goldman gets the kid glove treatment relative to the severity of its 1MBD misconduct.

CalPERS: Poster Child of Private Equity Cargo Cultism

CalPERS’ zealous defense of private equity looks pathological. So we hazard a diagnosis.

An Indictment of the “Standard Model” for Pension and Endowment Investing

A lucid and daming explanation of why public pension funds and other instutitional investors regularly fall short of popular indexes.

Why Has Mayoral Candidate Scott Stringer Invested New York City Pensions in Private Equity Firms Like Blackstone?

The New York City pension system provides more proof that investing in private equity hurts performance.

What Did Billionaire Leon Black of Apollo Get for >$50 Million in Fees to Jeffrey Epstein?

The more we learn about Leon Black’s relationship with sex offender Jeffrey Epstein, the less there is to like.

CalPERS Cooks Its Books: Grossly Understated Investment Consultant Meketa’s Expenses in Annual Financials; Made a Criminal False Account by Burying the Cost

CalPERS violates accounting rules by hiding outside consulting costs in internal investment overheads. None of the possible reasons are good.

CalPERS’ Bad Numbers: CEO Marcie Frost’s Multi-Hundred Thousand /Year Advisor Randle Communications Missing from Board Reports

A remarkable series of accidents led to the CalPERS board not being told how much CEO Marcie Frost’s advisor Randle Communications costs.

Another Compliance Failure: CalPERS Discussed Recusal of Ex-CIO Ben Meng but Failed To Enforce It; CEO Marcie Frost Says “Not My Job”

CalPERS CEO Marcie Frost told the press that she’s punting on her compliance duties.

CalPERS Staff Yet Again Tries to Usurp Board’s Power by Steering Governance Reforms After CIO Ben Meng Departure

CalPERS staff is too obviously still trying to stymie Controller Betty Yee’s governance reforms.