Tag: investor

December 4, 2019 admin123@ No comments exist

Hedge funds Hedge fund fees pour out of the sky during market-beating alpha returns which averaged 18.3% pa in 1990s, 6.4% in 2000s, 3.4% pa since 2010.  But buoyant markets now mask outflows to keep their global size constant at £2.3tn ($3tn, €2.7tn).  In 2018, 580 funds out of 11,000 closed, outnumbering launches for a…

November 29, 2019 admin123@ No comments exist

Internal rate of return How do private equity funds juice the internal rate of return (IRR)?  IRR is calculated once clients’ money comes in.  The shorter the period their money is put to work, the higher the annual IRR.  So, funds borrow money for the initial investment, & ask for client money later, to make…

November 22, 2019 admin123@ No comments exist

Almighty The US dollar remains almighty.  It makes up 2/3 of international debt & 2/3 of global currency reserves.  Oil & gold are priced in dollars.  Kidnappers of ships & people demand dollars.  European firms buy European planes in dollars.  Even when the US is the source of the problem, as in the 2008 global financial…

November 20, 2019 admin123@ No comments exist

Private equity What’s the big deal with private equity (PE)?  PE firms use debt to buy weak companies, turn them around & sell them.  They load the debt on to the acquired company & sell off its assets to create massive returns for investors quickly, while charging huge fees.  PE is changing finance & the…

February 13, 2019 admin123@ No comments exist

Apart World economies growing apart.  GDP growth 2007 to 2018: US 17.1%, Europe 11.6%, Japan 6.7%.  But US outperformed mostly due to problems elsewhere.  What next?  US lose momentum? Or rest of the world catch up?  Will affect financial markets, trade wars, currencies, politics.  What should investors do short-term & long-term? Guessed the Word?         Series 37 (1/7) …

August 13, 2018 admin123@ No comments exist

Investor visa Over 400 wealthy people ready to invest £2m ($2.55m) to get Tier 1  ‘golden visa’. Up 46% over 2017, esp. from China, Russia, Turkey.  Can stay in UK for 40 months & apply for British citizenship after that.  Increase is despite stricter rules from 2015, & other EU countries offering 2nd citizenship options Guessed…

November 17, 2017 admin123@ No comments exist

Ultra-long No repayment in a lifetime doesn’t deter today’s investor.  Austria’s first 100-year bond in Sep attracted twice the usual number of investors. Neither lender nor borrower will be around to see the bond repaid. Central bank quantitative easing fixed-income purchases have drained liquidity, dropped yields to record lows and caused risk mis-pricing. Guessed the Word?   …

June 2, 2017 admin123@ No comments exist

Institutional investors Pension funds are making unusual investments: Rabobank is landlord of Dutch sex shops, M&G property fund has bingo halls. Cast the net widely to generate a fixed stream of cash Guessed the word?   Series 4 (5/6)   [photo: Espressolia]