The Compound and Friends

Bullish Commentary on Blackstone7s Private Credit Performance

"One of the biggest alternative managers had published their report. Blackstone, did you see the results? >> I did. Phenomenal. I'm a shareholder. So, Blackstone's private credit business alone was up 13 uh almost 13% over the last 12 months. So, doing well despite all the cockroach fears."

The speaker highlights Blackstone7s impressive private credit performance, noting that its business was up almost 13% over the past year. He expresses confidence by stating he is a shareholder and emphasizes that the positive results come despite widespread market concerns referred to as 'cockroach fears'.

Pair Trade Opportunity: Long Robinhood (HOOD) & Short Schwab (SCHW)

+2.67%current return

"That could have been one of the greatest pure alpha pair trades I've ever seen. If you had put this trade on in '23, I want to be long Robin Hood, short Schwab. Holy cow, if this touches one, go the other way."

The speaker outlines an actionable pair trade based on the converging market caps of Robinhood and Charles Schwab. He notes that Schwab's market cap has compressed from as high as 22.5 times the size of Robinhood's to just 1.3 times, suggesting a potential reversion. The recommendation is to establish a long position in Robinhood (ticker HOOD) and a short position in Schwab (ticker SCHW) as the ratio normalizes further.