Hints and tips:
...The growth of groups such as Marshall Wace illustrates how the hedge fund industry is becoming increasingly concentrated in a handful of large, diversified businesses....
...And law firms are less regulated and more diversified than the banks. The only question for the superstars is when will the general counsels at their big clients start getting jealous....
...Fergus Hicks, real estate strategist at UBS asset management, said prices in Europe and the UK were correcting faster....
...Instead, they reckon uplifts in portfolio firm valuations have historically been due to revenue growth (at a sub-nominal-GDP pace?) and multiple expansion....
...“They had good performance so could still show growth even though active management was struggling,” said Brennan Hawken, an analyst at UBS....
...This relationship suggests the existence of a common shock that typically affects both defaults and GDP growth rate as opposed to a causal link running from defaults to growth....
...The next financial crisis is likely to be in the “shadow” non-bank lending sector, UBS chair Colm Kelleher has warned, saying the growth of lightly regulated private markets since the 2008 crisis is a “real...
...“A recovery in European equities is a more diversified bet” than direct investment in China, said Tomasz Wieladek, an economist at investor T Rowe Price....
...The growth capital model supports much of this....
...Traditional buyout firms as in CVC and TPG have also diversified their assets in preparation of becoming publicly listed companies, a trajectory many believe GA is on....
...Breit was the foundation of Blackstone’s effort to turbocharge growth by diversifying its investor roster beyond pensions and endowments and into private wealth....
...The US alternative asset manager has told investors it will wind down the Blackstone Diversified Multi-Strategy fund by the end of the year....
...No bank wanted to follow UBS into the penalty box and to miss out on dealflow....
...It is understandable why external investors with limited monitoring capabilities prefer to engage with a small number of diversified alternative asset managers....
...“It was a major narrative shift for Blackstone given how integral Breit had been to the story and their growth,” said Brown....
...For example, with UBS My Way, clients can fully customise their portfolios based on their preferences and priorities, but then the monitoring of the portfolio is done by an investment manager....
...Researchers from UBS investment bank have downgraded their forecasts for the country’s economic growth from 5.2 per cent to 4.8 per cent in 2023, citing a downturn in China’s dominant property sector, waning...
...“The world is moving towards larger, scaled and fully diversified businesses that can meet what clients are looking for,” he said....
...Bankers and lawyers have forecast a “wave” of consolidation among drillers and pipeline operators this year as shale companies try to eke out gains in a sector that may be entering an era of lower growth...
...‘Excess purchase price’ UBS wasn’t the only one to pull off the “deal of the century”. DD’s Sujeet Indap breaks down the $44bn bank bailout bonanza in this Alphaville post....
...“We are still a high-growth company.” Additional reporting by Beatriz Langella...
...But it raises a question: how diversified are those revenues? JPMorgan and Citigroup’s FICC businesses are more diversified than Goldman Sachs....
...However, the bank said it anticipated “downside risks for consensus [full-year] estimates later in the year given the prospect of slowing GDP growth, weaker margins and growing FX headwinds”....
...That makes acquisitions one of few remaining paths to growth....
...If not, how can they build a globally diversified equities portfolio without the world’s second-largest economy? Can the dragon ride high again?...
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