‘Psychopath’ Hedge Fund Managers Make Less Money (BBG)
The most “psychopathic” managers had the worst investment records. Those who ranked in the top 16 percent on the psychopathy scale lagged the average by 0.88 percent per year. Narcissistic managers, meanwhile, turned in mediocre returns, but their clients had to endure more volatility to get them, according to the study. That might be because narcissism, associated with overconfidence, causes fund managers to stick longer with ideas that just aren’t working.
Analysts Really, Really Want to Be Liked (Businessweek)
It’s an annual ritual among stock research analysts and their fund manager clients: vote-begging season for best-analyst rankings. “I appreciate how irritating this is,” writes a Citigroup analyst in London in one email asking for a vote. “If you have five minutes to spare, could you tell II how much you value our work?” asks a UBS analyst in another, referring to Institutional Investor, one of the publishers of rankings. A Jefferies analyst in Hong Kong includes in his email a handy graphic showing how two stocks climbed following his positive reports.
GE’s New Chief Makes Cuts, Starting With Old Favorites (WSJ)
For much of Jeff Immelt’s 16-year run atop one of the world’s largest conglomerates, an empty business jet followed his GE-owned plane on some trips to destinations around the world, according to people familiar with the matter. The two jets sometimes parked far apart so they wouldn’t attract attention, and flight crews were told to not openly discuss the empty plane, the people said. The second plane was a spare in case Mr. Immelt’s jet had mechanical problems.
Backroom battle imperils $230 million cryptocurrency venture (Reuters)
“As Arthur has done to others before me,” Gevers said, “this is attempted character assassination. It’s a long laundry list of misleading statements and outright lies.” He said the other two board members “are attempting an illegal coup.”
The War To Sell You A Mattress Is An Internet Nightmare (FastCo)
In January 2015, [Casper CEO Phillip] Krim wrote Mitcham that while he supported objective reviews, “it pains us to see you (or anyone) recommend a competitor over us.” Krim went on: “As you know, we are much bigger than our newly formed competitors. I am confident we can offer you a much bigger commercial relationship because of that. How would you ideally want to structure the affiliate relationship? And also, what can we do to help to grow your business?”
What Didn’t Happen on Black Monday 1987 (Elm Funds)
Another thing that I don’t remember happening was an economic depression following the stock market crash. Well, I guess that’s because it didn’t! It was supposed to though, just as the Great Depression followed the Black Tuesday of October 1929. In fact, in December 1987, 33 prominent economists (5 with Nobel prizes) issued a statement predicting that “the next few years could be the most troubled since the 1930s.” The fact that we moved forward with barely a blip to the real economy makes us feel that October’s stock market crash was bogus, a market move that had nothing to do with fundamentals. But it didn’t have to turn out that way.
Is “growing the pie” overrated, and does that explain why everything is terrible? (FT Alphaville)
“In advanced economies a lexicographic framework that focuses exclusively on distributional analysis and then only to growth when the distribution of different policies is the same is generally likely to be appropriate under a broad range of social welfare functions. This is because the distributional effects of many policies are orders of magnitudes larger than the growth effects.”
Scaramucci’s Holocaust death-poll costing him lucrative speaking gigs (Page Six)
A source says a November Scaramucci speaking appearance at NYC investment firm Neuberger Berman has now been canceled. A rep for the company declined to comment, but our source said the Mooch was to speak to a group of portfolio managers at a cocktail reception, and the firm feared that it could erupt into a huge commotion.