English Corner19.05.2017
Capital Dynamics study quantifies the diversification effects of private equity

Private equity portfolios not only offer a source of attractive return, but also diversify investor's equity allocation when constructed properly.

Capital Dynamics, a global private assets manager published a study on the correlation between private and public equity. “There is a “received wisdom” in the market that private equity helps to diversify an investment portfolio. However, until now, little research has been conducted to examine the figures behind this claim, and to investigate how and why private equity can do this", comments Mauro Pfister, Senior Director and Head of Solutions at Capital Dynamics. 

Key findings of the study are that private equity portfolios not only offer attractive returns, but also diversify an investors' equity allocation. Furthermore, the study shows that over the past 15 years the average correlation between the European and US buyout markets and public equity has been 80% at the portfolio level. Over the same period, the correlation of the European buyout markets has been considerably lower than that of the US buyout market. The study also provides the insight that concentrated private equity portfolios exhibit lower correlation, and that over-diversification can be avoided by a deliberate fund selection process. The authors of the study also believe that the fundamental differences in the private and public equity investment models will remain, implying that the diversification benefits of investing in private equity will persist in the future.

The fundamental differences of the two asset classes has the effect that private equity outperform public equity because of various reasons. For exemple drives private equity growth and operational improvements as well as it ensures a close alignment of the involved interest groups. Moreover can private equity firms obtain better access to internal informations of their investment targets.

Read the full paper here : https://www.capdyn.com/media/2009/diversify-your-portfolio-with-private-equity.pdf


Autor: jho

Weitere Meldungen

Is France on the March to a new Revolution?

14.07.2017 - Ian Ormiston, Old Mutual Global Investors, asks whether the French spirit of change is alive once again.  Mehr...

UK: The Pendulum Has Swung too Far

13.07.2017 - UK unemployment data add to pressure on BoE, says Mark Nash, head of global bonds, Old Mutual Global Investors.  Mehr...

Video games could prove to be disruptor in digital age

04.07.2017 - "Video gaming has an impressive global footprint, and the industry leaders are benefiting from an improved business model", explains Josh Spencer, Portfolio Manager at T. Rowe Price.  Mehr...

Understanding the ECB’s Sequencing Program

29.06.2017 - With the eurozone economy now on a firmer footing, the focus has shifted toward how the European Central Bank (ECB) will navigate its exit from unconventional monetary policy, says Kenneth Orchard from T. Rowe Price.  Mehr...

Expansion Continues, but New Cautions Signs Emerge

15.06.2017 - Growth in Europe is likely to remain moderate despite continuing uncertainties surrounding Brexit, says Nikolaj Schmidt, Chief International Economist at T. Rowe Price.  Mehr...

Umfrage

Der SMI steht bei Jahreshälfte nach einem kontinuierlichen Höhenflug über der Marke von 9'000 Punkten. Erleben wir in diesem Jahr ein neues Allzeithöchst?

 

Fonds/ETF-Statistiken


Events

Vision Bank - Vision Finanzplatz Schweiz

23.08.2017 13:45 | Zürich
Finanz und Wirtschaft Forum

SKSF Fonds-Konferenz

24.08.2017 09:00 | 8005 Zürich
SKSF

«Roboland»: Wie digital wird unsere Zukunft?

13.09.2017 17:30 | Zürich
Investors Panel

ICO Summit 2017

15.09.2017 08:30 | Zürich
ICO Summit

Investora Zürich, die Schweizer Aktienkonferenz

20.09.2017 07:30 | 8600 Dübendorf
Investora
zu allen Events

Indizes Schweiz

In Zusammenarbeit mit  morningstar.ch

Märkte


Die Marktkurse werden Ihnen von Investing.com Deutschland zur Verfügung gestellt.
  • Premium-Partner

  • Premium-Partner

    Fidelity
  • Premium-Partner

    Swiss Life AM
  • Premium-Partner

    MainFirst
  • Premium-Partner

    Morningstar
  • Premium-Partner

    RobecoSAM
  • Premium-Partner

    Nordea
  • Premium-Partner

    Oddo Meriten
  • Premium-Partner

    Rothschild

  • Partner

  • Partner

    Natixis
  • Partner

    WisdomTree
  • Partner

    swisspartners
  • Partner

    Morgan Stanley
  • Partner

    SimCorp, financial software solutions
  • Partner

    Primecoach
  • Partner

    UBS
  • Partner

    LGT
  • Partner

    JP Morgan
  • Partner

    Zürcher Kantonalbank ZKB
  • Partner

    Immofonds AG für Fondsverwaltung
  • Partner

    GAM
  • Partner

    BNY Mellon
  • Partner

    Robeco
  • Partner

    Fisch
  • Partner

    Swiss Fund Data
  • Partner

    Frankfurt-Trust
  • Partner

    FIRST INDEPENDENT FUND SERVICES AG
  • Partner

    Vontobel
  • Partner

    Source ETF
  • Partner

    Aberdeen Asset Management
  • Partner

    Invesco
  • Partner

    ResponsAbility
  • Partner

    Investec
  • Partner

    Bantleon
  • Partner

    Sauren
  • Partner

    GL Asset Management
  • Partner

    Ethenea
  • Partner

    Allfunds
  • Partner

    Schroders
  • Partner

    LimmatWealth
  • Partner

    JO Hambro
  • Partner

    Old Mutual Global Investors
  • Partner

    Schwyzer Kantonalbank
  • Partner

    Pioneer Investments
  • Partner

    Helvetic Trust
  • Partner

    Standard Life Investments
  • Partner

    T.Rowe Price
  • Partner

    Degroof Petercam
  • Partner

    Communicators
  • Partner

    Allianz
  • Premium-Partner

  • Premium-Partner

    Fidelity
  • Premium-Partner

    Swiss Life AM
  • Premium-Partner

    MainFirst
  • Premium-Partner

    Morningstar
  • Premium-Partner

    RobecoSAM
  • Premium-Partner

    Nordea
  • Premium-Partner

    Oddo Meriten
  • Premium-Partner

    Rothschild

  • Partner

  • Partner

    Natixis
  • Partner

    WisdomTree
  • Partner

    swisspartners
  • Partner

    Morgan Stanley
  • Partner

    SimCorp, financial software solutions
  • Partner

    Primecoach
  • Partner

    UBS
  • Partner

    LGT
  • Partner

    JP Morgan
  • Partner

    Zürcher Kantonalbank ZKB
  • Partner

    Immofonds AG für Fondsverwaltung
  • Partner

    GAM
  • Partner

    BNY Mellon
  • Partner

    Robeco
  • Partner

    Fisch
  • Partner

    Swiss Fund Data
  • Partner

    Frankfurt-Trust
  • Partner

    FIRST INDEPENDENT FUND SERVICES AG
  • Partner

    Vontobel
  • Partner

    Source ETF
  • Partner

    Aberdeen Asset Management
  • Partner

    Invesco
  • Partner

    ResponsAbility
  • Partner

    Investec
  • Partner

    Bantleon
  • Partner

    Sauren
  • Partner

    GL Asset Management
  • Partner

    Ethenea
  • Partner

    Allfunds
  • Partner

    Schroders
  • Partner

    LimmatWealth
  • Partner

    JO Hambro
  • Partner

    Old Mutual Global Investors
  • Partner

    Schwyzer Kantonalbank
  • Partner

    Pioneer Investments
  • Partner

    Helvetic Trust
  • Partner

    Standard Life Investments
  • Partner

    T.Rowe Price
  • Partner

    Degroof Petercam
  • Partner

    Communicators
  • Partner

    Allianz