The Big Picture

Debt and (not much) deleveraging
9 Out Of 10 Big Pharma Companies Spent More On Marketing Than On R&D
Houses Keep Getting Bigger
The Amazing Disconnect Between Hedge Fund Performance & AUM
10 Thursday AM Reads
Bianco: Lack of Inflation to Prevent Fed Rate Move

Posted: 13 Feb 2015 02:00 AM PST

9 Out Of 10 Big Pharma Companies Spent More On Marketing Than On R&D

Posted: 12 Feb 2015 04:00 PM PST

Source: Dadaviz
See Also: John Oliver attacked Big Pharma last night. Here's one important thing he left out. (WonkBlog)

Houses Keep Getting Bigger

Posted: 12 Feb 2015 10:00 AM PST

I am having lunch today with Jonathan Miller of Miller Samuel, and that means the latest (and some of the craziest) NYC real estate updates.

In honor of this meal, have a look at the long term trend in home sizes in the US:

Source: Treehugger

The Amazing Disconnect Between Hedge Fund Performance & AUM

Posted: 12 Feb 2015 07:28 AM PST

Earlier this week, Greg Zuckerman of the Wall Street Journal pointed out one of the great mysteries of today’s investment landscape: Despite underperforming by a substantial margin, hedge funds keep attracting more investors and assets under management. It is almost as if (to borrow the headline on Zuckerman's article), “Hedge Funds Keep Winning Despite Losing.” He wrote:

Hedge funds aren't just underperforming against the S&P 500 and other stock indexes. They're also losing out to low-cost "balanced" mutual funds that hold a mix of stocks and more-conservative investments, just like many hedge funds, suggesting their poor performance can't be blamed on a hedged approach.

Consider the data: According to HFR, a firm that created indexes to track hedge-fund performance, the average hedge fund gained a mere 3 percent in 2014 versus an 11 percent rise in the Standard & Poor’s 500 Index. That’s hardly worth paying a hedge fund outsized 2 percent management fees plus a 20 percent cut of the profits.

Continues here

10 Thursday AM Reads

Posted: 12 Feb 2015 05:30 AM PST

Straight-outta-Brooklyn, our craft brewed, dry-aged, hand curated morning train reads:

• What If Everything We Know About Recessions IsWrong? (BView)
• In Wake of Financial Crisis, Goldman Goes It Alone (WSJ)
• Apple’s New Market (stratechery) see also What Apple Just Did in Solar Is a Really Big Deal (Bloomberg)
• The key to financial success isn't saving more. It's investing more (Prag Cap)
• Very Little Evidence Disclosure Rules Are Effective (Dealbook)

Continues here

Bianco: Lack of Inflation to Prevent Fed Rate Move

Posted: 12 Feb 2015 03:30 AM PST

Click for video.

Source: Bloomberg