Aim Well Before Shooting for the (Private Equity) Stars

If you are shooting for the stars it may be wise to look for some reference points to be sure you are aiming in the right direction. Careful navigators always check the Pointers to confirm they have correctly identified the Southern Cross before marking the route. Continue reading

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Private Capital Beta: Theory Reloaded

In a recent Financial Analyst Journal article titled “Do (Some) University Endowments Earn Alpha?” the authors find that endowments mostly fail to deliver alpha and what looks as alpha can be almost totally explained by the inclusion of alternative investments in a static asset allocation. Digging further, the authors find that there is no strong statistical evidence of selection skill relating to the private equity and hedge fund portfolios. Continue reading