What’s Smart Money Doing – Dare We Ask?
The market is always interested in what “smart money” is doing because we certainly don’t care to know what the other group is doing. Close to the top of the smart money heap are the large Private Equity buyout managers. Private Equity serves an important role in the development of small companies as they need more capital to grow their business and with that grow the generation of new jobs. But Private Equity covers a large group of investors. This week the press focused on the story surrounding the pay at the most upper end of these elite investment managers. First, let’s make it clear that we have no problem with anyone making a lot of money. But all wage earners are all under the microscope these days and some of the stories out this week could affect each of us. This group sits on vast sums on money and are ready to deploy billions of dollars to buy companies they deem to be cheap. The managers that populate the top of this group see deals before anyone else and are able and strike quickly when opportunities are presented to them.