Carried interest won’t die
“The definition of a true partner is someone who shares your level of risk.”
– Sam Zell
RESEARCH
O’Shaughnessy Asset Management – Why Fundamentals Matter (9 pages)
OSAM on multiple expansion, speculation, and the importance of fundamentals.
Book Recommendations
- The Alchemy of Finance by George Soros
- The 7 Habits of Highly Effective People by Stephen R. Covey
- Awaken the Giant Within by Tony Robbins
Ryan Holiday (Author)
Paul Enright (Krainos Capital)
Ravi Gupta (Partner, Sequoia)
Jim Lanzone (CEO, Yahoo!)
PODCASTS
Rob Arnott & Campbell Harvey on Why They Believe Inflation Hasn’t Peaked
[8/22/22 – 70 minutes]
Apple | Spotify | Google
Arnott & Harvey share why they don’t think inflation has peaked, why the Fed isn’t equipped to curb inflation, and what areas of the market look attractive today.
From The Episode:
“I believe that the Fed is constrained today, way more than the early 1980s. Because in the early 1980s, the debt to GDP was about 34%. And today, it’s over 100%. So as the Fed increases the rates, it increases the debt service cost in a way that is magnified by a factor of four compared to the early 1980s.”
Prof. Ludovic Phalippou: Private Equity, Under the Hood
[7/21/22 — 56 minutes]
Apple | Spotify | Google
Professor Phalippou discusses the intricacies of private equity, the difficulties in evaluating managers, and calculating actual fees and returns.
From The Episode:
In the last 12 years, one-third of buyouts were in software alone.
Carried interest wormhole
[8/12/22 – 26 minutes]
Apple | Spotify | Google
Great look into the history of carried interest and how the tax loophole seems to always survive tax reform.
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