Editor's Note: Below is a chart (and excerpt) from today's Early Look written by Hedgeye Macro Analyst Ben Ryan.
If you could sit in your quiet office with only hard copies of important reading material all-day, without having to worry about your mark-to-market risk, you’d probably have to multitask a little less. Those public market investors with long-term track records that sit in a quiet office outside of financial hubs are probably on to something.
I’m by no means making a big call here other than stating the facts, and saying that 30+ years of nominal interest rates moving lower and very easy money over the last decade has helped this model and the AUM flow we see in the Chart of the Day. Because of those “capital funding” facts, economic downturns have probably been a little less painful in PE broadly.