Reading Time: 3 minutes First published in Family Capital. “It is advisable for one that he should divide his money in three parts, one of which he shall invest in real estate, one of which in business, and the third part to remain always in his hands.” – The Talmud This passage appears in a record of debates between … More Have asset allocations changed in 2000 years?
Reading Time: 3 minutes As a runner, I’ve had my fair share of calf/knee aches and pains, usually it seems pretty clear to me is that what is needed is a good sports massage to work out the tension. I book into see a good physio, but imagine my frustration when a short while later I am balancing on … More Investors: Think like a Physiotherapist
Reading Time: 6 minutes In the 1990’s competitive swimmers got very serious about swimming large distances underwater at the start of races. This culminated most famously in Russian Denis Pankratov winning the 100m butterfly at the Atlanta olympics by swimming more than half of the first length underwater and breaking the world record. Swimming’s governing body, FINA, decided understandably … More When the Rules Change
Reading Time: 5 minutes It’s a psychological fact that market falls are almost always painful. But stock market rallies can be almost as hated if they take a lot of people by surprise which is the same as saying the narratives in play against it are stronger or more prevalant than those supporting it. The bounce we’ve been in … More A reason this equity rally might not be overdone
Reading Time: 5 minutes First published in Family Capital As public markets shrink investors have many reasons to focus on long-term returns in private markets, but many challenges await It has happened so slowly you may not have noticed, but the public markets are in something of a crisis. The number of listed companies in the US which today … More The rise and rise of private markets
Reading Time: 4 minutes Contrary to first impressions, big wave surfing is all about risk management. In the late 1980’s legendary Hawaiian big wave surfer Brian Keaulanu looked at the new models of jet ski that were being produced like the Yamaha Waverunner that allowed the rider to sit down, and had a flash of inspiration. He realised that … More We’re all risk managers now
Reading Time: 2 minutes To follow on from When the Rules Change. Should investors use more leverage? Usually avoided with an allergic aversion, but CALPERs recently put the cat among the pigeons with their strategic decision to use 20% leverage to meet performance targets. Clearly it all depends on the terms of the leverage. But if a foundation or … More Four questions I would love to know the answer to (but don’t)
Reading Time: 4 minutes The internal-rate-of-return is the traditional way of measuring returns in private markets (where cash-flows occur into and out of partnerships) but its shortcomings as a measure are one big reason to be wary of private markets performance, more on that here. It can be a bit like comparing apples with squirrels. One of several issues … More Apples and Squirrels – IRRs vs CAGR
Reading Time: 2 minutes To follow on from underrated skills. In a remote world where everything’s changed and long-term is next month, which skills have gained in importance? Starting with “I’m not sure“ False certainty can be a huge risk at the best of times, even more so when the world has changed and no-one really knows for sure … More Uprated skills
Reading Time: 3 minutes Your standard finance textbook gets it wrong, or at least doesn’t tell you the full story. Three investors, three different paths of return this year (orange, green, blue). But assuming they start and end at the same point (I know they don’t quite), who feels best? And why? Which is the best investment? Simple question … More Yes, the journey matters
Reading Time: 3 minutes Sixty-six percent per year average returns (before fees) over thirty years. With no down years. Yes, you read that right. That’s the spectacular track record for Renaissance Technology’s Medallion fund that author Greg Zuckerman lays out in his investigative book on the legendary mathematican and Renaissance founder: Jim Simons (“The Man Who Solved the Market“). … More The Best Investment Track Record Ever?