A new technique called direct alpha may overcome key problems with some typically used private equity benchmarking methodologies. Read more
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Against a weaker economic background, a re-run of pre-crisis practices is no longer acceptable. In the face of criticism from regulators, investors, and politicians alike, an overhaul of private equity practices is overdue. Read more
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Low rates on sovereign bonds have pushed many investors farther and farther out on the risk spectrum into equities, junk bonds, and other more speculative investments — including the central banks themselves who apparently are big buyers of equities too. Credit spreads are now at all-time lows since the onset of the crisis. Read more
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Charlie Munger once said: “In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time — none. Zero. You’d be amazed at how much Warren reads — and how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.” Read more
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The recent Chapter 11 bankruptcy protection filing of Energy Future Holdings Corporation — once the subject of the world’s largest leveraged buyout, and now the biggest private equity bankruptcy since the demise of Chrysler — casts an unflattering light on the rarefied sphere of private equity investment. We take the opportunity to review recent research on the place of private equity in a diversified investor’s portfolio. Read more
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Highlights from the last month included Lauren Foster’s favorite TED videos, Jason Voss’s favorite insights from our annual conference, and some advice on how creativity can help you stand out as an investment manager. Read more
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Some of the most fascinating presentations this year covered the limits of fundamental analysis, took issue with the utility of hedge funds, and highlighted the “economics of good and evil.” Read more
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Thanks to a bull market and strong relative returns, assets under management for activist investors have swelled — tripling in just the last five years — allowing these high profile fund managers to launch more campaigns and take on bigger companies. Read more
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There has been increasing interest in emotional assets, which include such luxury goods and collectibles as art, stamps, wine, and musical instruments. Recent research finds that emotional assets outperform government bonds, Treasury bills, and gold over the long run. Read more
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