Hedging the Real Risk of Private Equity

OpinioPro Selection
Door september 9, 2019 18:11

Hedging the Real Risk of Private Equity

Most hedging conversations with investors focus on hedging the public portion of their equity portfolios. However, more recently, we have increasingly been receiving inquiries regarding hedging private equity (‘PE’). These questions come even as allocations to PE have been increasing as a percentage of overall assets. Public pensions awarded 64% more mandates in PE in 2018 than they did in 2017.1 Typically, little to no capital is allocated to managing PE risk, even though underlying assets are effectively leveraged equity. In part, risk mitigation in PE poses a challenge as cash flows generally do not support much capacity to spend on option premiums. However, investors may also be taking comfort from the low volatility of the reported returns and seemingly relatively benign drawdowns during crises.2 While these very smooth returns imply low risk, we believe investors would be wise to judge those reported results cautiously. 

OpinioPro Selection
Door september 9, 2019 18:11

Zoek

Asset Allocation Consensus Augustus

Twitter

Alpha Research onderzoekt momenteel het landschap van beschikbare #Alternatives in de Nederlandse markt en organiseert op dinsdag 8 oktober een Investment Meeting hierover. Kom je ook? https://t.co/UX0Tqwz5b9

Volgens onze Global Investor Study 2019 heeft slechts 44% van de mensen er vertrouwen in dat ze weten hoeveel geld ze hebben bij de verschillende financiële dienstverleners. Lees meer: https://t.co/ngtN4AgmJ2

Trenmark pitch at Hollandfintech meetup.
What can Trendmark do for you? How does it work?

#hollandfintech #fincog #trends #BigData

https://t.co/VGRz0kE0vz

Load More...

Zoek op datum

september 2019
M D W D V Z Z
« aug    
 1
2345678
9101112131415
16171819202122
23242526272829
30