Haphazard Edition: No real pattern today, but its bad news all around. Venture is dead, a financial tsunami is a-brewing, why Harvard and Yale have the same benefits as funds of funds, and which airline is the most delayed.
Abnormal Returns: Asks if CalSTRS’ cutting its Blackstone Group commitment is a sign that LPs are pulling back from private equity investments. To me, the retreat is old news (just look at the booming secondaries funds), but we’ve been waiting for a major sign like this to prove our point.
Dealscape: The VC sector is unsustainable, one investor says. I’ve heard this sentiment before, from venture investors themselves, but I’m not sure it’s taken to heart. I’m more in line with the idea of market bifurcation between well-performing VCs and money-losing ones.
BITS: In an exactly opposite development, pay for venture professionals (Buyout pros, too) hasn’t been hurt at all in the credit crunch.
Bloomberg: But back to the doom and gloom. Bill Gross (who some might call a bit bearish) predicted the credit crunch before most of us had even whispered the words “subprime mortgage,” and now he’s warning of a “financial tsunami” if the government doesn’t step in. Paul Kedrosky isn’t impressed.
Market Movers: Felix Salmon explains why Harvard and Yale have great returns in alternative investments, and it’s the same reason that funds of funds exist: access.
CNNMoney: JetBlue is officially the most delayed airline, meanwhile Northwest is the most on time.