Bloomberg Spotlights Poor Private Equity Returns From Last “Peak of Cycle” Mega Deals
Buying at the peak rarely works out, as private equity’s pre-crisis mega deals confirm. Yet general partners fared really well.
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Funds Hold Most Cash Since GFC
Fund manager cash holdings are at crisis-bottom levels, typically a sound bullish indicator. But will history predict the future this time?
Read more...Investment Manager GMO Debunks Mythology of “Sound Finance,” or Deficit Hawkery
Yves here. Sometimes it is best to let things speak for themselves. In that spirit, I am embedding a very important paper by the well-respected investment management firm GMO which debunks the tenets of “sound finance,” meaning the claim that governments need to balance their budgets. I expect to be referring to it regularly, particularly […]
Read more...Edward Lambert: Forecasting the Stock Market thru Effective Demand
Dave here. The markets have taken a beating in 2016, and while the fallacy of thinking the market=the economy seems like an oversimplification, this post provides a competing viewpoint that, without taking a position in affirmation or dissent, I thought I would offer up for discussion. For some background, you can read Edward’s other posts […]
Read more...Why is CalPERS Understating Its Cost of Investing in Private Equity by Roughly $1.6 Billion, Meaning 80%?
CalPERS keeps putting its hand in the buzzsaw by presenting misleading or outright false information about private equity fees and costs.
Read more...Bond Investors Get Skittish as Record Wave of Acquisitions Push to Close Financings
Standard & Poors warns of the worst drop in the “net outlook bias” for bond investors since the financial crisis.
Read more...Puerto Rico Defaults a Second Time; Claims of “Scheming” Designed to Crush Island Citizens
Puerto Rico fails to pay $37.3 million in bonds due today. While investors and analysts call it a bluff, the stakes are quite real.
Read more...CalPERS: Stockholm Syndrome and Cowardice on Private Equity Fee Disclosure
I have wanted to leave CalPERS alone. Really. Truly. But they keep asking for attention in the worst possible way.
Read more...Wolf Richter: IPO Window Suddenly Closes, “Worst Year Since 2009,” Worst December Since 2008
The IPO market shutting down does not bode well for private equity returns, and may be sending a warning about real economy prospects.
Read more...Pensions & Investment Editorial Savages Trustees for Failing to Perform Fiduciary Duty Over Private Equity Fees
Pensions & investments, in an astonishingly outspoken editorial, excoriated fund trustees for failing to perform their fiduciary duty and called for sanctions.
Read more...We Won a Fight Against CalPERS Over Its Plan to Ignore Private Equity Risk
A Los Angeles Times headline recapping a board meeting Monday says it all: “CalPERS shelves controversial private equity policy.”
Read more...Partial Tally of Hidden Private Equity Fees: 6% of Equity Invested
A new study on private equity’s hidden charges is sure to fuel demands for more transparency.
Read more...Our Bloomberg Op-Ed on CalPERS’ Plan to Get Rid of Private Equity Risk by Ignoring It
CalPERS’ plan to eliminate the measurement of private equity risk, a seismic change, is a case study in how staff manipulates the board to its own advantage.
Read more...Matthew Cunningham-Cook: How the Christie Stole New Jersey Local Government Workers’ COLA
A vignette of how pensioners are being shafted by being denied their COLA, or cost of living increase. In New Jersey, this looks to be a transfer to Wall Street.
Read more...San Diego Union-Tribune Editorial Attacks CalPERS Over Half-Baked Plan to Lower Return Targets
CalPERS comes under fire on a new front: its fight with Governor Jerry Brown over how quickly to lower return targets to realistic levels.
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