Blackstone Hits 11% Return; BlackRock AUM Surges to $15.5T
Today’s Highlights
Opencode Launches Gemini 4 Argon; Multiple Discount Updates
Opencode recently introduced Gemini 4 Argon (Contributor), now available under the Go subscription plan with a limited-time 6x credit multiplier.
Google claims Argon leads in 12 of 18 benchmarks, with one tie for first place. According to AA’s evaluation, its composite score is 53, roughly on par with GPT-6 Astra and slightly below Opus 5.5.
Beyond the significant discount for Argon, Opencode has increased the discount multiplier for DeepSeek V4.1 Flash to 8x (previously 6x). Additionally, through the Zen plan, it offers free access to Jev, Cat Jam (new model), Space Bunny, Muse Spark 1.3 (contributor), and Mimo-v2.6-Flash.
01 Li Lu: The Fundamental Premise of Compound Interest Is Not to Lose What You Already Have
On October 5, Li Lu delivered a high-density talk at the 36th Graham-Dodd Annual Luncheon, covering value investing, the AI wave, and the compound interest of life, producing many memorable quotes.
He reiterated the six basic principles of value investing: stocks represent ownership in businesses; the market provides services, not guidance; a sufficient margin of safety is essential; one must clearly define the boundaries of their circle of competence; fish where the fish are; and wealth is the share of purchasing power within the economy.
He particularly emphasized the prerequisite for life’s compound interest: The most basic premise of compound interest is not to lose what you already have. If you can let your knowledge compound continuously, your capital will eventually compound as well. Today’s extreme market divergence actually provides a better opportunity set for those who can maintain rationality.
As a disciple of Charlie Munger, Li Lu’s quotes echo the styles of Munger and Warren Buffett.
Regarding the hot topics of AI and RSI this year, he believes this technological revolution is evolving from “tools” to “creation,” which is extremely dangerous. However, AI cannot become a “man-made god” because society will not allow it; social constraints and financial discipline will ultimately bring the market back to rationality.
Commentary: There is a saying that structure equals intelligence, and the complexity of structure equals IQ. From paramecium to octopus to humans, and now to silicon-based intelligence, this seems entirely applicable. Today, those who believe the human brain is the final form of intelligent evolution are no different from those in the Middle Ages who believed the Earth was the center of the universe. Humans are not the primary citizens of the universe. Evolution does not stop for humanity.
02 Tech Giants’ Heavy Borrowing for AI Investment Heightens Financial Fragility
The International Monetary Fund (IMF) issued a warning in its Global Financial Stability Report regarding tech companies borrowing to finance AI infrastructure. The report notes that corporate debt issuance related to AI may compete with other financing needs and could create new vulnerabilities in global financial markets. 3
Big Tech Updates
03 BlackRock’s Q3 Report: AUM Reaches $15.5 Trillion
BlackRock’s Assets Under Management (AUM) reached $15.5 trillion at the end of Q3, with net inflows of $86.9 billion over the past 12 months. Quarterly net inflows were $20.5 billion. Revenue grew 19% year-over-year, technology subscription revenue increased by 14%, and adjusted EPS rose by 38%, alongside a $550 million share buyback. 4
04 Blackstone: Multi-Strategy Hedge Fund AUM Hits Record $595 Billion
Joe Dowling and Riad Abrahams of Blackstone outlined their allocation logic. The strategy averaged an 11% return in 2025, with large managers weighted at 12.5%. Industry growth over the past five years has been 16%, far exceeding the peer average of 4%. The 50-year correlation between stocks and bonds is 62%. Ivy League endowments have replaced 20% of fixed-income allocations with this strategy, which offers a long-term annualized return of 9% with volatility under 5%, poised to reshape institutional diversification frameworks.
Joe Dowling is Blackstone’s Global Head of BXMA, and Riad Abrahams is the Strategy Risk Quantitative Lead. 6
05 Paul Tudor Jones Bullish on Oil: Short-Term Rise of $20–$25 Expected
Jones bases his judgment on the trajectory of the US-Iran conflict, believing there is little possibility of a solution before the midterm elections in November. He also stated that if such scenarios materialize, the stock market will be correspondingly affected.
Jones is a legendary macro hedge fund manager and founder of Tudor Investment, famous for shorting the 1987 stock market crash. 2
Quant Career
06 Sequoia’s Hiring Method: Who Is More Likely to Succeed?
Sequoia favors individuals with a sense of “insecurity,” those who have faced setbacks but are eager to prove themselves. They appreciate “opposite-unification” traits, such as being both ambitious and humble, rigorous yet supportive, maintaining logic under pressure, and being extremely serious and candid. They focus on doing fewer things but doing them exceptionally well, communicating transparently and directly, and they warn against falling in love with the “appearance of hard work,” always ready to review goals and direction. Ultimately, it is about assessing internal drive, mental maturity, working methods, and principles of conduct.
Sequoia Capital is a top-tier global venture capital firm, known as the “Silicon Valley King of VC.”
