1/ Here’s an interesting Covid dilemma brought to you by the fucking idiots in local government that can’t think their way out of a paper bag:
85 year old man falls and breaks hip and requires surgery. Leaving aside for the moment the limited to non-existent visiting hours and
2/ the issue that creates (ask any doctor what the typical elderly reaction is to post surgery anesthesia recovery and how being around familiar faces helps), family of said 85 year old is now faced with a dilemma.
What’s the rehab plan?
3/ Normal course would be some time in a rehab facility immediately after to insure physical therapy is maximized and supervised by pros. However, because of nonsensical and draconian reactions to all things Covid, in NY if a congregate care facility is struck by a single case
4/ the entire facility gets locked down. No visitors and worse, you ain’t getting out in a few days. You are there until the facility is cleared. Which could be weeks. So 85 year old faces the possibility of more time in isolation which is horrendous for morale.
5/ So the obvious but sub/optimal choice is at home rehab. Why risk the lockdown potential?
So. . . how many lives are now being negatively impacted by the hard cost of downstream Covid policies? If masks work so well, what’s the issue? If frequent hand cleaning works
so well, clearly a better action plan can be created? I mean these measures work, I’m told all the time MASKS SAVE LIVES! WEAR A MASK!! So we take all the necessary steps to be safe but it’s still not enough.
Maybe there is something else going on. Hmmmm.
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1/ For you youngsters that are unfamiliar with the inner workings of our business, let me translate this. All public registered vehicles are required to have a distributor by statute. Your distributor handles your broker dealer relationships (managing the various platform
2/ requirements and regulatory compliance), and they oversee your factsheets and public communications (as does internal compliance). For that, most statutory distributor relations cost between 5-10 basis points per year. Kelso/Resolute was Ark's distributor.
3/ In addition, many firms also hire distributors or third-party marketing firms to push their products through the broker dealer channel. It used to require a pretty heavy monthly retainer plus a portion of the management fee as compensation. Howevah. . .
1/ I just listened to a fascinating call arranged by our friends @TweetMacro with John Fund, the Wall Street Journal columnist and author of books on voter fraud. Here’s the punch line: there was undoubtedly fraud in this presidential election but not enough to move the needle.
2/ Fund’s basic point was this election was rife with improprieties – probably more than most – but it’s too much for Trump to prove it in a short timeframe, and then get the establishment that has attempted to thwart him at every turn for four years to do anything about it.
3/ So Trump needs to run the process through to the December meeting of the electoral college, and then concede. But, that doesn’t change Fund’s other important point: we spend too much time on who is in office and not enough on how they got there.
1/ Last week The Second Biggest Idiot to Occupy a State House (BIOSH2) mandated that all MA residents MUST wear a mask at all times when outside the home, else one risks getting fined $300. You’re probably sitting there wondering, “how stupid can he be?” Allow me to show you.
2/ In the past two weeks, we’ve had 16,000 positive cases and 164,000 total since The Worst Plague of All Time graced our shores. BIOSH2 probably looks at this chart and says: “How many dumb conclusions can I draw from it?”
3/ Of those 16k cases, 83% were in the 0-59 age group. Those 16k cases have resulted in a grand total of. . . 185 hospitalizations. 73% of the hospitalizations over the past two weeks were in the 60+ cohort and 10% in the 50-59, proving that younger peeps don’t really suffer.
Back in the day there were really just two big off-the-shelf Order Management Systems (OMS) that most mid-sized shops used. Big firms often have their own customized solution. We used one of the two big ones.
2/ These things ain't cheap: $200k/yr for us for the Full Monty (compliance, accting etc.). These systems are 28(e) eligible (soft-dollar safe harbor in '34 Act), so we paid using commission credits. And in our heyday, we'd generate $300-400k annually in soft dollar credits.
3/ You have to keep track of soft-dollar credits carefully lest you run afoul of Johnny Law. It was almost a full-time job. And there are portals from other software vendors the allow you to track and pay invoices in one central location, which we used. Thank God.
Here's page 1. Lots of sellers. Some updates not filed yet (they have until tomorrow). Baron bought 1,800. Big of him. Jennison unloading 450k. Citadel has not yet filed. That's options related shares.
Page 2. T Rowe a big seller again. Whale Rock is a Boston hedge fund, ex-Fidelity. Advisor Group is a new holder. Here are their top holdings.
Page 3. DE Shaw playing the same momentum game as Renaissance.
1/ In the podcast referenced below, @profplum99 makes the excellent point that passive investing is having an outsized impact on price discovery; distorts it, and results in these seemingly blind v-shaped market recoveries (if I may paraphrase).
2/ We agree with Michael on this subject and have had conversations w him about it. Still we all need context around the amounts in question. Passives have a role for sure, but don’t underestimate how much money is sloshing around in the hands of idiots (RobinHODLr’s).
3/ Pick your source, but the Fed estimates total US household financial assets to be in the neighborhood of $90 trillion.