The Myth of Private Equity | Jeffrey C. Hooke | Talks at Google

In this talk, he discusses his recent work on the performance, returns and alpha generated by private equity funds. In doing so, he emphasizes the impact of fees, firm size, and liquidity as well as addressing implications for the individual investor.

[devonzubka]

“My background is a little unusual.” As he begins to explain how he started in investment banking and then to private equity after.

[maximuswedgie]

They come in like a wrecking ball. To all of you owners out there, thinking this might be a good idea to sell and cash out. Remember you’re not selling a company you’re selling the people that made you all of what you are today. And you will be there to witness what they do. The people that you knew and trusted for decades will be thrown away like trash. Enjoy your retirement.

[bc]

For him to present this material as clearly, calmly and quickly as he did, it indicates that he knows what he's talking about.

[VegasVaron]

Good presentation. Additionally, both Buffett and Munger have very low regard for PE firms, that’s says a lot about these firms.

[MrKasnif]

This is my second time watching this video and it never gets old.

[MagdaleneM-fq]

One lesson I've learned from millionaires is to always put your money to work, no matter how small. Even investing €200 per month can compound to tremendous wealth over decades. The key is to keep going!

[KP-ddci]

The law of Supply and demand holds true in every market... be it veiled in mark to model, mark to market or otherwise.

[arpitzelawat]

Awesome talk... Main thing was that the PE funds are themselves marking to the market of their unsold investments.

[RoadMapMarketing]

Excellent, clear and well researched presentation on the myths of private equity - thank you!

[cvf]

As a real estate appraiser I find it amazing how PE has moved into real estate development. In a slow market and/or rising interest rates the PEs can be destroyed. When you consider the property's market value the PE's can be overleveraged to the point that the debt is more than market value. The PEs look great right up until the property goes into foreclosure, then everything vanishes for the investors.

[CommoditiesTrader]

When you have to substantiate your worth with a glorious CV for 5 minutes before saying anything should say all you know. Trust me, we all know what Pro Bono means. We all would love to know what you actually did, not where you were at some point in time.

[frednuer]

classic presentation very easy to understand, thanks for talk

[eriknuveen]

What is the statistical probability of the first quartile achieving it again (repeating success)? Poor. What are the odds of the largest funds achieving success (beating an index fund)? Random.So, why is it that these funds continue to exist? In investing in proprietary companies, one significant success can fund the future of the PE company and the investor’s desired returns. What we need to know is what the average dividend and distribution is of the PE funds to the investors over 10 years. Diversification is often the major cause of earnings paralysis; clipped at the knees by over diversification. The pressure to succeed, the entrance of the more common investor in PE funds and the failure to achieve success beyond the index funds has muted interest by the institutional investor. Knowledge is king. First question to ask a PE fund, “What are your exact carry fees and are they based upon revenue or invested funds values?”

[constantineandreu]

Ever notice with these PE firms🤔 The CEO'S are the ones that always become the billionaires👌they use their clients funds to rake in the dollars and handout to them the cents❤

[MarcusFred-wniv]

There are a lot of strategies to make tongue-wetting profit that the average joes don't know. . Personally, the financial-market for me seems the only way forward with my long time horizon (accrued roughly $457k in gains since Mid 2021 ) but if you don’t have that fortune of time it’s a tough market out there almost nowhere feels safe!

[liuton]

"The myth of private property" from Goolag

[Bouje]

Just listened to him talk about how Asian retail investors are more “whimsical” (it’s a “hot stock”) than US retail investors. yep I knew right then this video was before GameStop and before Covid. Sure enough it was 5 years ago.

[rustyeaglemaker]

Sources? Think it's cut-off in the presentation. Looking at Cambridge Associates data and very different return profile from what he is showing.

[MrDeben]

I, generally, agree with his overall warnings about the "fuzziness" associated with PE or the exaggeration of the possible future returns. However, I think he's being a bit disingenuous comparing PE returns to the returns of US public equity markets over the past decade. The past decade for the S&P500 or Russell 1000 has far exceeded long-term averages (aka the returns have been anomalous.)

[debraperez]

I'm a rube. But just received a money market ad from my bank that was going to pay 2 percent!!! I want to know how to get their 21 plus percent usury credit card returns into MY account. Really!!??