Risk profile

CalPERS' problems are not the players but its investment game. Macro over micro. Cause over consequence.

Merely to question PE performance is considered heresy, a charge that should be reversed to put a religion of finance on notice to change immediately and fundamentally. We have come to the rescue.

Let's do a thought-experiment to wake us up from the expired truths of foregone conclusions.

Humanity must begin to adhere to nature's first-principles to become a prime species.

Asset management is dead, to all but those who recognize alpha is a force of nature.

The excessive spread between valuation and value causes reality to come knocking.

Powerful is the determined risk of the first money-in that changes the world for the better. Follow-on investing is an easy peasy risk-profile, not powerful but handy to have around.

Here are my opinions about the broad strokes of the CalPERS announcement yesterday, and how they relate to the risk deployed in asset management.

You either bet on the stupidity or the smarts of humanity. The definition of best becoming a function of the holding period.

Understand what it takes to pursue prime risk.