Corporate Finance

61 Posts

The Place of Private Equity in a Diversified Investor’s Portfolio

Diversification

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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Weekend Reads for Investors: Repo Mania

Weekend Reads

It’s perhaps not surprising that US corporations have taken advantage of historically low interest rates by issuing record amounts of debt. It’s revealing, however, that companies are using the proceeds to buy back their shares with stock prices at all-time highs. According to S&P Capital IQ, US firms are repurchasing their shares at a pace not seen since 2007. Read more

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Poll: Little Support for Buffett’s Abstention from Coca-Cola Vote

Thomas Piketty’s popular new book, “Capital in the Twenty-First Century,” has struck a chord with the public in part because of a growing disenchantment with the generous compensation packages lavished on corporate executives, so it was not without irony that last week 83% of Coca-Cola’sshareholders approved a controversial equity compensation plan for approximately 6,500 employees that had been widely panned as excessive. Read more

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Weekend Reads for Investors: The Super Bowl Indicator

Weekend Reads

This weekend approximately half of US households will be watching the Denver Broncos and Seattle Seahawks compete in the 48th edition of the National Football League’s Super Bowl. It is typically a time when stock market observers cast seriousness aside and consider what the game’s outcome will mean for equity prices by examining the Super Bowl Indicator. First proposed in 1978, this theory holds that stocks will rise in the coming year if an original NFL franchise wins, but will fall if an old AFL team wins. Read more

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