Sentences with phrase «hurdle rate»

With limits on prudent debt levels and minimum hurdle rates for equity investments, the typical financial engineer quickly reaches a limit on the price he can pay for a company.

Don't be adverse to holding cash if you can not find opportunities with downside protection and a mathematical expectancy that meets your investment hurdle rate.

But for me, I've given myself a much higher hurdle rate, 25 % (see my blog What's wrong with my Portfolio).

Do you have a required hurdle rate, and is it appropriate?

It's possible that management might let drop the anticipated rate of return on the new project, or even their target hurdle rates for new projects in general.

When nominal interest rates were 8 %, a 15 % hurdle rate perhaps made sense.

I understood that the policies written by the client had implied hurdle rates attached to them.

Tackling top CIO challenges head - on: meeting hurdle rates and target returns, preparing for a rising rate environment, finding good deals in a pricey market

Every waterfall model I've ever done has used IRR targets as hurdle rates.

Or, based off of that, consider this graph, which shows the PEG hurdle rates as a function of initial P / Es.

It could be 10 % (which Warren Buffett uses), or it could be 6 % (Joel Greenblatt's minimum hurdle rate when 10 year US treasury yields less than 6 %).

According to a Dwyka statement the transaction has also made provisions for the payment of an additional one million rand and 24 million rand worth of Dwyka shares, if certain hurdle rates are met.

«If companies are maintaining traditional hurdle rates, they are unlikely to invest any time soon, and we will not see the kind of growth, productivity and job creation we are looking for,» Poloz said.

Lowering the hurdle can increase the GP's probability of collecting incentive fees and cause the payment of incentive fees to the GP to begin sooner, although it will have no effect on the amount of incentive fees ultimately paid by a fund that would easily have cleared the percentage hurdle rate if it hadn't used a line.

Wesfarmers chairman Michael Chaney has disagreed with Reserve Bank of Australia Governor Glenn Stevens» view that big companies have not reduced hurdle rates for investment decisions amid falling interest rates, in an address at this morning's Business News Success & Leadership breakfast.

Performance fee of 20 % over hurdle rate (2 - year Government of Canada Bond Yield plus 450 basis points).

Assuming I'm interpreting his comment correctly, there is a potential tax angle in his taking IRA withdrawals early, up to your next tax hurdle rate.

You can also think of this as the breakeven hurdle rate.

12.5 % investment return) should make another 1 % incentive fee (after hurdle rates etc.).

A current yield of 7.5 - 8 % + will usually get me interested, but that's my initial hurdle rate — prospects for capital gain will dictate if I can perhaps ultimately earn 10 - 15 % pa.

This way you can also simplify analysis in industries where revenues and earnings are bought and sold more frequently in terms of mergers and acquisitions, as you would generally expect the management to make transactions that are in line with their internal hurdle rate.

Sounds like you could also have a CoC pref for the annual cash flow, but then also have an IRR hurdle rate and promote for the purposes of sale.

The company utilizes performance - based equity awards with specific performance criteria and hurdle rates disclosed

«Hurdle rates for new investments do not seem to have adjusted to the new reality,» Poloz said.

if 10 - 30 Year Treasury Rate was 3.5 %, it's 50 % premium would be 5.25 %) you demand a minimum of 6 % return as your minimum hurdle rate, then the stock market is at over-valued territory.

Absolute valuation means you value if something is over-valued based on a predetermined investment hurdle rate.

Mack - Cali shall participate in management fees and 50 percent of value creation above certain hurdle rates.

But if companies are maintaining traditional hurdle rates, they are unlikely to invest any time soon, and we will not see the kind of growth, productivity and job creation we are looking for.

Hedge funds still have a higher hurdle rate than most fund categories because the fees are so high and the competition is so great.

Do you have preliminary filters in place — required hurdle rate, risk profile, complexity, un-knowability, etc. — to quickly weed out ideas and not waste precious research time?

The hurdle rate provides the incentive.

«This «hurdle rate» the return on equity that must be achieved by a corporation in order to produce any real return for its individual owners — has increased dramatically in recent years.

Moreover, the «hurdle rates» that define the minimum acceptable return on an investment remain higher than they should be — in many cases because thinking remains coloured by an earlier world of higher inflation and interest rates.

Therefore, if estimates of neutral rates of inflation are falling, hurdle rates should fall with them.

«Hurdle rate» lacks the rhetorical punch of «dead money.»

Stephen Poloz used a speech on September 20 in Quebec City to educate a group of economists about the «hurdle rate» — the minimum return on an investment companies require before they agree to part with their money.

Poloz said the hurdle rate generally is calculated by adding the risk - free interest rate, expected inflation, and a risk premium.

So something else must be going on, which brings us back to the hurdle rate.

The entry of new capital into any buyout sector tends to raise prices and increase pressure for investors to consider lowering their hurdle rate.

The inflation rate might therefore be considered the «hurdle rate» for an investment strategy — the minimum return required to keep a portfolio's purchasing power intact.

Charlie and I have never talked in terms of hurdle rates.

30 - year US treasury rates can be 3 %, but if they have a flow of deals that return 10 % that is «sort of» their hurdle rate.

However, in my conversations with Canadian firms I have picked up on another possible investment impediment — hurdle rates for new investments do not seem to have adjusted to the new reality.

I have had some business leaders tell me that they have been surprised to see, for example, companies in Asia pursuing investments with implicit returns of around 3 to 4 per cent, well below most companies» hurdle rates.

Because the risk - free interest rate is closely related to the real neutral rate, and because the real neutral rate has been declining, it follows that hurdle rates should also be lower, all else being equal.

There are financial metrics (Return on Investment, Hurdle Rate, etc.) for new product development that emphasize immediate returns.

The hurdle rate is the lowest acceptable rate of return that a company chooses for an investment to proceed.