Oddly Relevant Dec-3-2012

In the world of technology, remaining static is not an option: The biggest proportion of dealmaking is in wireless, telecoms services and internet software and services (Deutsche Telekom and Softbank, for example). Future focus points include (1) 4G network build-out and consolidation, (2) consolidation in EM, especially Africa, (3) More activity involving mobile operators securing fixed [line] capacity, (4) consolidation of traditional media to react to secular online threats. [Note: Like we say in Chinese, no flowers blossom for a hundred days]…Source: http://www.ft.com/intl/cms/s/0/2883f2ce-1dff-11e2-8e1d-00144feabdc0.html#axzz2E2eHmGGT

Japan seeks new normal in aftermath of tragedy: Once with 30% of electricity powered by atomic plants, Japan now declared its intention to close down the nuclear industry by the end of the 2030s. Oil and gas are to fill the gap by producing 30% more greenhouse gases—all in a back-drop of an increasingly uncompetitive consumer electronics sector but robust scientific foundation. [Note: Giant of efficiency, yet a limp man of creativity]…Source: http://www.ft.com/intl/cms/s/0/146cb782-3496-11e2-8986-00144feabdc0.html#axzz2E2eHmGGT

Quant Fund launches at record high: Amidst an average of 3.2% loss of systematic this year, a record 187 quant, or algorithmic funds, launched last year and account for 12 per cent of all hedge fund start-ups. Such a surge was contributed by (1) flood of former prop traders, (2) investor demand for low-vol, high liquidity strategies with exposure to currency and commodities market. [Note: a more crowded space with higher correlation and tighter margins.]…Source: http://www.ft.com/intl/cms/s/0/e4daf350-3a60-11e2-a32f-00144feabdc0.html#axzz2E2eHmGGT

An internet of airborne things: For small items that are needed urgently, such as medicines, why not use drone helicopters to deliver them, bypassing the need for roads altogether? The plan is to build a network of autonomously controlled, multi-rotor unmanned aerial vehicles (UAVs) to carry small packages of a standardized size. Rather than having a drone carry each package directly from sender to recipient, which could involve a long journey beyond the drone’s flying range, the idea is to build a network of base stations, each no more than 10km (6 miles) from the next, with drones carrying packages between them. [Note: AWESOME]…Source: http://www.economist.com/news/technology-quarterly/21567193-networking-enthusiasts-dream-building-drone-powered-internet-carry-objects

Y Combinator cuts class: With too many teams, there is not enough attention divided to each. Being picky here is truly for the benefit of both the entrepreneurs and the veteran investors. [Note: It makes sense that the team is more tolerant of bad companies after eating lunch]…Source: http://www.wired.com/business/2012/12/ycombinator-cuts-class/

Major asset class returns YTD: EM bonds in the helm, US stocks 2^nd, and foreign developed market stock + REITS compete for 3^rd. Source: http://www.capitalspectator.com/archives/2012/12/major_asset_cla_19.htmlh