Carried interest won’t die

“The definition of a true partner is someone who shares your level of risk.”

–  Sam Zell


O’Shaughnessy Asset Management – Why Fundamentals Matter (9 pages)

OSAM on multiple expansion, speculation, and the importance of fundamentals.

Book Recommendations
Kyle Bass (CIO, Hayman Capital) 
  1. The Alchemy of Finance by George Soros
  2. The 7 Habits of Highly Effective People by Stephen R. Covey
  3. Awaken the Giant Within by Tony Robbins

Ryan Holiday (Author)

  1. Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel

Paul Enright (Krainos Capital)

  1. Mindset: The New Psychology of Success by Carol Dweck

Ravi Gupta (Partner, Sequoia)

  1. How Will You Measure Your Life? by Clayton Christensen

Jim Lanzone (CEO, Yahoo!)

  1. Team of Rivals: The Political Genius of Abraham Lincoln by Doris Kearns Goodwin


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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