Carlyle Group unveils new leadership as founders step back (Reuters)
Carlyle Group said on Wednesday that Glenn Youngkin and Kewsong Lee would become its co-chief executives, in the U.S. private equity firm’s biggest shakeup since it was founded by David Rubenstein, William Conway and Daniel D‘Aniello 30 years ago.
Trump Asks GOP Senators: Should Taylor or Powell Be Fed Chief? (WSJ)
Sen. Mike Rounds (R., S.D.) said he was sitting in the back of the room during lunch and didn’t see very many hands go up for one candidate or the other. “The vast majority just kind of grinned at him,” he said, and played down the president’s request for a show of hands as “conversational.” “It was like, ‘Hey, who do you want me to do?’ One of those kind of deals,” the banking committee member said.
Goldman plans private equity expansion to help offset trading funk (Reuters) Goldman Sachs Group Inc is ramping up its private-equity investments and going after smaller, high-growth targets as part of a broad plan to offset recent trading declines, three people familiar with the effort told Reuters. Goldman’s investment bank, which typically focuses on advising large companies on mergers and raising capital, is now looking to use Goldman’s own funds to finance a handful of small, promising companies in the near-term, the people said.
Poorly timed trades crush fund assets managed by Crispin Odey (FT)
A string of ill-timed bearish trades and client outflows have slashed in half the money managed by Crispin Odey, one of London’s best-known hedge fund figures. The outspoken investor who was a prominent backer of Brexit has seen the assets in his flagship Odey European fund fall from €2.5bn at the start of 2015 to €184m, according to fund documents.
Warsh vs. Quarles Feud Has Been Renewed by Trump Fed Search (BBG)
Fed Governor Randal Quarles, who was sworn in this month as vice chairman of bank supervision, has told friends that he doesn’t think Warsh is qualified to lead the world’s most powerful central bank, according to two former associates familiar with his comments. Quarles, they added, is also concerned that Warsh would inject himself into regulatory policies that are meant to be the domain of the vice chairman. Treasury Secretary Steven Mnuchin, a key participant in the chairman search, is aware of Quarles’s concerns, the people added.
There's Now a Cryptocurrency Fund-of-Funds (BBG)
Serial entrepreneur and venture capitalist Rick Marini wants to raise $100 million to invest in 10 crypto-focused hedge funds. The fund, called Protocol Ventures, opened this month with $1 million of Marini’s own capital. “The goal is to provide diversification for investors,” Marini said. “With this volatility you want to invest enough that the upside is meaningful, but not so much that it would hurt your portfolio in the case of a loss.”
Uber — an early adopter of new revenue-recognition rules — believes it has SEC’s blessing of its business model (Marketwatch)
The ride-hailing service contends its customers are the drivers — not the passengers — and it merely facilitates their trips. Securing the SEC’s blessing of this view of its business model would allow the company to report financial results without disclosing how much money drivers are taking home.
Overstock.com to launch massive ICO (Axios)
- The Overstock.com ICO will utilize [Overstock subsidiary] tØ, with Byrne comparing it to Jonas Salk injecting himself with the polio vaccine to prove safety.
- He believes in a future whereby companies find it more efficient to raise capital via ICOs than by selling stock, and thinks many existing companies could issue ICOs to buy back shares.
The Bitcoin Boom: Asset, Currency, Commodity or Collectible? (Aswath Damodaran)
Would I buy Bitcoin at $6,100? No, but not for the reasons that you think. It is not because I believe that it is over valued, since I cannot make that judgment without valuing it and as I noted before, it cannot be valued. It is because I am not and never have been a good trader and, as a consequence, my pricing judgments are suspect. If you have good trading instincts, you should play the pricing game, as long as you recognize that it is a game, where you can win millions or lose millions, based upon your calls on momentum. If you win millions, I wish you the best! If you lose millions, please don't let paranoia lead you to blame the establishment, banks and governments for why you lost. Come easy, go easy!
The Power of Bias in Economics Research (Ioannidis et al)
Our survey of 159 meta-analyses of economics reveals that empirical economics research is often greatly underpowered. Regardless of how ‘true’ effect is estimated, typical statistical power is no more than 18% and nearly half of the areas surveyed have 90% or more of their reported results stemming from underpowered studies. This survey also identifies widespread bias. The majority of the average effects in the empirical economics literature are exaggerated by a factor of at least 2 and at least one-third are exaggerated by a factor of 4 or more.
Tortoise, 186, the oldest living creature in the world, comes out as gay (Metro)
It’s been a mystery for years. But we’ve now found out why Jonathan the tortoise has never had any children, despite spending a large part of his life with his female tortoise companion Frederica. Jonathan, who is believed to be the oldest living creature in the world at 186-years-old, is in fact gay.