Inflation is All About Monetary Policy – And Other Stuff Too

Inflation Is All About Monetary Policy – And Other Stuff Too by Michael SchmanskeChief Investment Officer, AngelMD “Inflation is always and everywhere a Monetary Phenomenon” – Milton Friedman For those of you who are not fanboys of Monetary theorists… Okay, just so you know, to a finance guy like me that kind of feels like… Continue reading Inflation is All About Monetary Policy – And Other Stuff Too

Value V Growth

Let’s talk about one of the most abused Stock classifications in public markets. Value vs. Growth stocks. Most investors are at least casually familiar with the terms. At its most basic, it is obvious. Utilities are Value stocks and speculative technology companies are growth stocks. But how do financial professionals classify them? And why is… Continue reading Value V Growth

The Funds Gap

The Funds Gap (part 2 of 2) by Michael Schmanske Consider the structure of an Institutional Asset Manager. They charge 2% on Assets Under Management (AUM). So a $250M fund generates $5M /year in fees. Operational and fundraising expenses take away ~ 40% of that leaving $3 million for compensation. An institutional PM doesn’t get… Continue reading The Funds Gap

The Funds & Funding Gap

Funds & The Funding Gap (Part 1 of 2)by Michael Schmanske Most successful startup founders have, or will become familiar with, the idea of the “Funding Gap”. It’s not complicated, but if you are an entrepreneur and are not familiar with the term you are either very lucky or still too early to know what’s… Continue reading The Funds & Funding Gap

Is Investing the Same As Betting?

In one of our blog posts from several years ago, we did a book review of Annie Duke’s book: Thinking in Bets. It’s a fascinating book in which Ms. Duke makes the case that all decisions are a form of a bet…probability. Seeking Alpha has a really well done new article called: If Investing Feels… Continue reading Is Investing the Same As Betting?

Made By We (“Fail Big” Cont.)

The We Work revisited story continues to get commentary given the massive investment made by Andreesen Horowitz. It’s true that Adam Neuman built a game-changing real estate business. They re-defined co-working spaces when the only real player had been sleepy Regus. They also raised extraordinary amounts of capital and convinced smart investors to value the… Continue reading Made By We (“Fail Big” Cont.)

Fail Big

“If you owe the bank $100, that is your problem. If you owe the bank $100 Million, that’s the bank’s problem.” – John Paul Getty On wall street there is a common series of humor. If you make a mistake and lose a couple million you get fired. But if you REALLY screw up and… Continue reading Fail Big

Managed Syndicates – The “Why” for Investors

Managed Syndicates for investors by Michael Schmanske Okay so we’ve covered “What are Managed Syndicates?” How about “WHY are Managed Syndicates?” For Investors in early stage startups you have a choice. Go alone or with a group. If you are a High Net Worth individual and have the liquidity to invest and manage investments with… Continue reading Managed Syndicates – The “Why” for Investors

Syndicates: A Primer

Syndicates: A Primer by Michael Schmanske Special Purpose Vehicles (SPV’s) are the smaller, older sibling of a product that made a huge splash last year, the Special Purpose Acquisition Company (SPAC). I won’t detail the differences, but suffice to say the motivation, fee structure and investment targets are drastically different between these products. The benefit… Continue reading Syndicates: A Primer

An Early Stage Investment Framework

An Investment Framework by Michael Schmanske Anyone who knows me, knows I have no choice but to be blunt. I spent the early part of my career in the trading pits yelling orders and competing against 200 of my closest enemies. Those were my calm days. Half-joking aside, I spent my Wall Street career working… Continue reading An Early Stage Investment Framework