Month: January 2009
Private Equity
Recently I wrote about the troubles in hedge funds, where easy money in terms of 2% of assets and 20% of profits (easy to find when the market was moving up) has evaporated. Another field where someone a few years out of (an elite) college can make millions is… private equity.
Wikipedia has a decent summary of private equity. Private equity typically consists of taking a public company private by purchasing their equity shares, taking actions to increase the value of the company, and then re-launching the company back in the public markets and “cashing out”. Another path to private equity consists of taking equity stakes in start up companies (like the famous venture capitalists in the dot.com era) and then earning profits when the company goes public. Often the private equity firms raise “funds” with a time horizon, typically ten years, where they invest the money in a variety of investments and then the money is returned to investors at the completion of the fund, whether it results in new profits or losses.
Along with hedge funds, private equity made up a large component of the “alternative investments” that many endowments and wealthy individuals started to invest in en masse in the late nineties and into the current decade in search of higher returns. Typically these sorts of investors put their money into public market equities, debt and real estate – this “alternative investments” were supposed to bring higher returns and also not be not correlated with equity, debt and real estate.
Now Available: SE’s Reading List
I have written before on the nature of my personal reading program. Since I published that post I have received email and blog comments (both at my personal blog, and at Chicago Boyz) from various people requesting a copy of my reading list.
Superb Talk by Peter Mansoor
This video is excellent. It is a talk by Col. Peter Mansoor about the Iraq war. Even the Q&A is good. Col. Mansoor was a brigade commander in Iraq, and he is now a military historian at Ohio State. He wrote a book about his experiences, Baghdad at Sunrise: A Brigade Commander’s War in Iraq
Highly recommended.
UPDATE: The talk is extremely critical of the Bush administration, Rumsfeld and particularly Bremer. If you don’t want to hear that criticism, don’t listen.
VALKYRIE–Brief Review
Went to see the film last Tuesday, and I agree with Lex that it is well worth seeing. Cruise does a credible job as Stauffenberg, and most of the acting is well done, although the mix of accents…a lot of American English and various flavors of English-English, plus a bit of German…was slightly bizarre. I was particularly impressed with Halina Reijn’s portrayal of a minor character, Margarethe van Oven (secretary to the conspirators.) She had almost no speaking lines, but has a wonderfully expressive face, and uses it well to portray her character’s emotions.
One aspect of the film, though, seems to me to be unjust and historically inaccurate.