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

Stanhope Capital to launch Pan-European Entrepreneurs Fund

21.11.2017 - Stanhope Capital announces the launch of a €100 million private equity fund, backed by entrepreneurs, to invest in dynamic European SMEs.  Mehr...

Shift towards energy, healthcare and commodities

08.11.2017 - Although the first nine months of the year were marked by geopolitical tensions, Xavier de Laforcade and Yoann Ignatiew, fund managers of the R Valor fund, reassure that they nevertheless provided a buoyant environment for an acceleration in global growth.  Mehr...

Bank of England raises UK interest rates

03.11.2017 - The Bank of England has done the inevitable and the expected by raising the interest rates. Léon Cornelissen, chief economist at Robeco, shares his view on whether this decision can be traced back to the Brexit vote or the Fed.  Mehr...

UBS/PwC Billionaires Report 2017: Asia outpacing the US for the first time

26.10.2017 - The UBS/PwC report shines a spotlight on new trends among billionaires and shows a return to growth for billionaires globally.  Mehr...

Switzerland is Average for Fund Investors

19.10.2017 - Morningstar's fifth Global Fund Investor Experience (GFIE) study shows that Switzerland retains an overall grade of Average, with a number of improvements made since the last survey.  Mehr...

Umfrage

Wie stufen Sie die Berufsaussichten in der Finanzbranche generell für die nächsten fünf Jahre ein?

 

Fonds/ETF-Statistiken


Events

GIPS Day 2017: Global Investment Performance Standards

22.11.2017 08:30 | Zürich
Swiss Funds & Asset Management Association SFAMA

ETF/ETP Roundtable

22.11.2017 17:00 | Zürich
SIX Swiss Exchange

Swiss Fund Day

23.11.2017 13:00 | 8002 Zürich
Swiss Fund Day

Swiss Sustainable Investment Day

23.11.2017 13:15 | Zug
IFZ

Vorsorge-Anlass

28.11.2017 17:45 | Zürich
swisspartners
zu allen Events

Indizes Schweiz

In Zusammenarbeit mit  morningstar.ch

Märkte


Die Marktkurse werden Ihnen von Investing.com Deutschland zur Verfügung gestellt.

Premium Partner

Fidelity
MainFirst
Morningstar
Nordea
Oddo Meriten
RobecoSAM
Rothschild
Swiss Life AM

Partner

Aberdeen Asset Management
Allfunds
Allianz
Bantleon
BNY Mellon
Communicators
Degroof Petercam
FIRST INDEPENDENT FUND SERVICES AG
Fisch
GAM
GL Asset Management
Helvetic Trust
Immofonds AG für Fondsverwaltung
Invesco
Investec
JO Hambro
JP Morgan
LGT
LimmatWealth
Mercer Investments
Morgan Stanley
Old Mutual Global Investors
Primecoach
ResponsAbility
Robeco
Sauren
Schroders
Schwyzer Kantonalbank
SimCorp, financial software solutions
Source ETF
Standard Life Investments
Swiss Fund Data
swisspartners
SYZ
T.Rowe Price
UBS
Vontobel
WisdomTree
Zürcher Kantonalbank ZKB