Keeping Score, Fast and Slow (Hint: It’s Not Just About the Game of Golf)

Most of the times ideas come up from unusual sources, often unexpectedly mixed. This is what has happened with this post, in which I am writing about how score keeping in the game of golf and decision making psychology can provide insights about the valuation of investment performance.

Asset Managers Are from Mars, Investors Are from Venus (Part 2 – A Space-Walk Down to Earth)

In the first part of this post, I wrote about how differently asset managers and investors react to stressfull situations, with the retreat to the cave of the ones contrasting with the need for increased communication and transparency of the others.

Yale and the Wolf, a Venture Capital Performance Tale

Every year, the press coverage about the release of the annual financial reports of one of the most prestigious investment offices in the world, often referred as the benchmark for long term investing, reminds me of a classical tale. And it’s not the first time I write about it, but reiteration deserves an encore.

Can I Teach Your Money the Duration Trick?

Even the most sophisticated among us, when a magic trick is performed well, can’t resist its fascination. Let’s admit that. As small kids we thought there was some special power in the hands of the magician. Growing up, we all know that is an illusion, misdirectional cheating. But we keep asking HOW it’s done.

A Challenging Validation, “a contrario”

Over the past two weeks, the conversation and the exchange of emails with a highly reputable and quant skilled professional in the private equity industry have posed an interesting intellectual challenge and created a very useful opportunity for testing “a contrario” the DaRC methodology and for discussing the relation between duration and time horizon.

Aim Well Before Shooting for the (Private Equity) Stars

If you are shooting for the stars it may be wise to look for some reference points to be sure you are aiming in the right direction. Careful navigators always check the Pointers to confirm they have correctly identified the Southern Cross before marking the route.

The Neglected Weight of Time (in Private Equity History and Valuation)

There are instances, you would agree, when putting time in perspective can make a real difference.

Pink Floyd’s Private Equity Songs

The temptation of another private equity musical license was too strong to resist – the titles of some of the most famous songs and albums of one of my favorite rock groups may seem to have been made on purpose to introduce and comment upon certain highly debated arguments in the PE industry.

Hey Hey My My, Private Equity Can Never Die

One of the likely most memorable achievements of David Rubenstein will be not about private equity, in the strict sense – it will be the rap he sang in the Carlyle’s 2014 Holiday message to investors. Musical license for musical license, he might as well have come up with a rock song to introduce his recent predictions about the evolution private equity industry. Neil Young would forgive that it is me instead to “use” the song for a few related comments.

Stranded Capital, Fire Sales Or….

I wrote in my previous post that actual durations of PE funds are longer than those that are the perceived industry standards. The 14-year number reported in the headline of an article of a recognised magazine is a different thing, but it ties well and allows some reasoning about LP extensions, fire sales and the possible rational alternatives for investors.