[DcifrThs]

thanks!! great article so far.

on this thought:

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Second, within domestic equity exposures, we're looking for a handoff from small-cap and mid-cap to larger-cap companies. This has to do with the growing influence of the private equity. We believe that large cap companies will be next to benefit from the large influx of private equity capital buying up companies. Private equity companies are now targeting larger capitalization companies. As an example, think of the recent news on Cerberus Capital Management, the private equity firm, buying Chrysler for some $7 billion.

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the liquidity available to private equity managers is a major determinant of this i think. do they have long lock ups? (aka, could a sudden aversion to risk and pull back of demand for risky PE allocations allow current investors to take money out?)

a rise in global interest rates will start to pull some of this money out of PE firms, though currently they do have a TON to work with and long lock ups would allow this trend to continue to i like his thought of moving to large caps.

i'll keep reading and post other thoughts

Barron