Saturday, August 16, 2008

The Best Private Equity Funds Show Persistence

There has been endless debate about whether the best mutual and hedge fund managers show real skill in terms of being able to achieve persistent outperformance. A recent paper by the Boston Consulting Group presents evidence that the best private equity funds do show persistent outperformance as shown in the key figure below:

As I argued in yesterday's post it is important to pick good private equity funds as the average fund globally shows high risk but not neccessarily risk-adjusted outperformance compared to public equities. There is plenty more interesting stuff in the paper.

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