Opening Bell: 5/16/16

Opening Bell

Over Past Two Decades Yale Earned 93% Annually On Venture Capital (Bloomberg)

The initial $2.7 million investment that Yale University made in LinkedIn Corp. has produced a gain of $84.4 million for the university’s endowment since 2011 when the company went public.  It is a prime example of the role that venture capital has played in helping to drive the performance of the $25.6 billion, second-richest college endowment in the U.S.  According to Yale University’s 2015 investment report, which was posted on its website, over the past 20 years venture capital has earned the school a 93 percent annual average return.

Rate Hikes Are On Track According To Yellen and Fed Alum (Reuters)

On Thursday Janet Yellen, Federal Reserve Chair, said that the course of the U.S. economy is solid and is showing signs of inflation, putting it on track for additional interest rate hikes.  Her remarks came in defense of the decision she made last late last year to tighten policy.  Yellen, in a rare sighting, spoke as part of a New York panel that included three of her predecessors from the most powerful central bank in the world.  She said, seven years following the severe financial crisis, that at this point the labor market in the U.S. was “close” to being full strength, and argued once again that inflation wouldn’t be held down for much longer by low oil prices and a strong dollar.

Now That Fidelity Has Pulled Out Blackstone Will Be Shutting Down Mutual Fund (Bloomberg)

According to a filing on Thursday with the U.S. Securities and Exchange Commission, the Blackstone Alternative Multi-Manager Fund won’t be accepting new money any longer and by May 31 will be liquidated.  The investment adviser for the fund will be seeking to convert all of the holdings into cash equivalents and cash in order to meet the redemption requests that are anticipated.

Following The Allergen Deal Being Scrapped, Investors Sticking With Pfizer CEO (Reuters)

Although failure on this large of a scale frequently jeopardizes a CEO, 10 portfolio managers and investors informed Reuters that they supported Read.  They said that Read had a great deal of goodwill built up since 2010 when he took over and tackled numerous problems that he inherited at the time, including re-energizing Pfizer’s struggling research and development operation.  Also, many blame the Allergan deal’s demise on the U.S. government instead of Read.

Audiences Are Being Left A Bloody Mess By ‘American Psycho’ (NYP)

A production of “American Psycho” is taking precautions after audiences complained that they had been spattered with fake blood.  A memo was sent to staff from a Schoenfeld Theatre manager that stated that a patron had come to him last night and complained that stage blood had hit her.  Her Burberry cashmere scarf and sweater were stained, and even more critically her Louis Vuitton leather bag (which she cried when showing it to him). He informed her that the theatre would pay to have her items cleaned.  In order to avoid further damage, extra measures are being implemented by the show.

Free Money Is Ruled Out As Antidote For Falling Prices By The E.C.B. (NYT)

According to Peter Praet, who is an E.C.B. executive board member, the helicopter idea it isn’t something that is on the table.  It has been referred to that due to the image of the populace being showered with money from the sky.  He stated that at the conference it hadn’t even been discussed informally.

CEO Pay Has Seen Its Largest Decrease Since The Financial Crisis (WSJ)

Last year CEOs at almost 300 publicly traded large companies saw their median pay decrease from $11.2 million in 2014 to $10.8 million in 2015.  It represented a 3.8% decrease, according to an analysis done by the Wall Street Journal of MyLogIQ data.  Half of the CEOs saw their total pay either increase by less than 1% or decline.  It was the worst performance for S&P CEOs since the financial crisis of 2008.

A Bleak Outlook Is Painted By Morgan Stanley For Fewer New Twitter Users (Bloomberg)

Analysts from Morgan Stanley have come down hard on the social media giant Twitter.  Their forecasts have been lowered for the company’s stock price, with lower growth projected for earnings, revenue and new users.  According to a note on Thursday to clients from Brian Nowak and other analysts, new user and engagement trends remaining troubling.

Macaulay Culkin States That He Is Basically Retired From The World Of Acting (NYDN)

In a recent interview with Vulture, the former child star stated that he was essentially a retired man in his middle thirties.  He added that he basically goes where the wind takes him.  Most of Culkin’s days are spent painting, writing and doing whatever.  He continues to call New York City his home.

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