Historically, hedge funds have outperformed during up markets, and protected capital in down markets, but have underperformed over the past 7 years. What then are the realistic expectations investors should have regarding future hedge funds performance relative to stocks and bonds?
Transparency varies by hedge fund investment strategy. At a minimum, investors should understand the primary return drivers and risk factors in each underlying investment, which can be analyzed qualitatively, statistically and operationally.
Both stocks and bonds have several sources of return, which over the long-term provide a reasonable guide to future performance.
It would be overly simplistic in our view to consider headline dry powder numbers in isolation and conclude that private equity as an asset class should be avoided.
Each year global consultancy Bain issues a comprehensive, state-of-the-industry report on private equity, which has become required reading for most investors in the asset class. We’ve highlighted five key findings from the report...
Alternatives viewed as more important by high-net-worth investors in 2017
Private companies commanding valuations of over $1 billion have earned themselves a new moniker, with references to “unicorns” and even “super-unicorns” (companies with valuations above $10 billion) saturating the investment press in recent years....
The latest pulse poll of our high-net-worth investor network reveals broadly positive sentiment, with 63% of respondents expecting a boost to economic growth under a Trump administration. This is consistent with several other HNW surveys taken...
Andy Rachleff wrote an excellent post on the Wealthfront blog Feb 5th titled “You Can’t Get Access to the Best Alternative Assets.” It is a very interesting post and highlights many truths about investing in alternative assets. So why are we now writing a blog post with the exact opposite title? How can we agree with Andy’s general statements yet disagree with his overall conclusion?
According to Cambridge Associates U.S. Private Equity Index Summary, over the past 10 years private equity returns have outperformed the S&P 500 by 668 basis points annually (14.12% vs. 7.44%) and over the past 15 years by