One of the eternal problems with measuring the return and risk of private investments is that the lack of liquidity artificially smooths return over time.
Blows the lid on the whole near-fraudulent sector...
Would be interesting to see similar analysis of UK EIS investments and platforms. I have dabbled with a few of these and my perception is that even quite good ones are more efficient at converting the tax rebates into their own fees than they are at providing any sort of positive return for investors. But a few are rather better than that. Or maybe just luckier, as one 10x or 100x makes up for a lot of turkeys.
Guess you - and the authors of the paper your quote - won't be getting invited to many hedge fund christmas parties!
I have long been deleted not just from Christmas Party invitation lists but entire Christmas Card recipient lists. Comes with the territory of evidence-based investing.
I wonder what this would look like if you could do the same for Private Equity?
In a previous employer we estimated the return gap for private equity to be in the order of 3% to 5%...
Wow.
Blows the lid on the whole near-fraudulent sector...
Would be interesting to see similar analysis of UK EIS investments and platforms. I have dabbled with a few of these and my perception is that even quite good ones are more efficient at converting the tax rebates into their own fees than they are at providing any sort of positive return for investors. But a few are rather better than that. Or maybe just luckier, as one 10x or 100x makes up for a lot of turkeys.
Guess you - and the authors of the paper your quote - won't be getting invited to many hedge fund christmas parties!
I have long been deleted not just from Christmas Party invitation lists but entire Christmas Card recipient lists. Comes with the territory of evidence-based investing.