weekend notes

Anecdote: “I love to walk new board members through our history,” said the CIO, the two of us discussing unique challenges facing endowed institutions in the decade ahead. “Between 1965 and 1975 the endowment lost approximately 85% of its real purchasing power,” he said. “A decade or more of outstanding investment returns had left the endowment flush in the mid-1960s, and the leaders had expanded

Hope all goes well… “Tesla and SpaceX factories have a great vibe,” tweeted Elon Musk, Detroit’s autoworkers and owners on a collision course. “We encourage playing music and having some fun. Very important for people to look forward to coming to work!” continued the world’s richest man, his $271bln net worth nearly twice the combined market capitalization of General Motors ($47bln), Ford ($50bln)

Anecdote: “Conceptually it’s very easy,” said the CIO. “Practically it’s very hard,” he continued. A lovely winter day in August, the world upside down. We were discussing dynamic asset allocation, which for them consists of adjusting one’s portfolio to lean against powerful market trends. “It is the part of our investment program that our peers are most interested in discussing.” He leads a sover

Hope all goes well… “If I could give you a definitive explanation for the phenomenon, I’d either be in line for a Nobel Prize or I’d be a liar,” he said. It was a good answer. I’d asked the candidate to explain quantum entanglement, it has always fascinated me. He’d spent over a decade studying quantum physics, string theory. “The mathematics that we use to describe our work in the quantum field i

Hope all goes well… Dusted off an anecdote from Nov 2016 following a conversation with one of our industry greats about disruption, destruction, adaptation, outperformance (see below). Hope you had a great summer break. Enjoy the rest of your Labor Day. See you next Sunday with full weekend notes. All the very best, Eric Week-in-Review: Mon: UK holiday / lowest US equity volume of the year, China

Hope all goes well… Dusted off an anecdote from June 2018, when the multi-decade trend toward ever lower inflation rates had started to shift. The process that started back then appears far from over (see below). I take the late summer off from writing, to squeeze in some reading. Recharge. Hoping the same for you. All the very best, Eric Week-in-Review: Mon: PBOC cuts 1y LPR by 10bp (5y unch) / s

Hope all goes well… Dusted off an anecdote from June 2018 about journeys, and sharing our fears, failures, joys, discoveries (see below). I take the late summer off from writing, to squeeze in some reading. Recharge. Hoping the same for you. All the very best, Eric Week-in-Review: Mon: Japan 2Q GDP 6.0% (2.9%e), Japan 2Q GDP Deflator 3.4% (3.8%e), Australia Wage Price Index 3.6% (3.7%e), China Jul

Hope all goes well… Dusted off an anecdote from September 2018 about particle physics, financial markets, quantum entanglement, and how opportunities often appear as mysterious phenomena (see below). I take the late summer off from writing, to squeeze in some reading. Recharge. Hoping the same for you. All the very best, Eric Week-in-Review: Mon: Ukraine launched more drone attacks on Russia over

Hope all goes well… Dusted off an anecdote from October 2018 about accidents, our reactions to them, the opportunities they represent (see below). I take the late summer off from writing, to squeeze in some reading. Recharge. Hoping the same for you. All the very best, Eric Week-in-Review: Mon: BoJ conducted an unscheduled JGB buying operation as yields continued higher following Friday’s YCC adju