Content & News
Diversification: An Alternative Perspective
Diversification is widely regarded as the only 'free lunch' for investors. By diversifying investments across different asset classes, investors can reduce their portfolio risk without sacrificing returns. The classical 60/40 portfolio (i.e. 60% equities and 40%...
The (Shadow) Bank of Private Equity
In the shadows of the growing private equity market, Collateralized Loan Obligations (CLOs) are gaining traction. Although CLOs indirectly invest in the senior debt of similar companies, they offer a potentially distinct risk-return profile from private equity....
Persistence in Private Equity: Utopian Perspectives?
Private equity managers promote their funds to potential investors based on (strong) historical performance. However, an age-old adage tells us that “past performance does not guarantee future results”. Still, a private equity manager's track record can be indicative...
Have the Stars of the Market Earned their Stripes?
The performance of U.S. stocks over the past decade has been impressive, outperforming other developed countries by ~7% annually. Consequently, investors have no trouble continuing to place (concentrated) bets on the Stars & Stripes. However, from a historical...
(Un)conventional wisdom in portfolio construction
Tactical choices in portfolio construction may induce sub-optimal results. Even if one were able to predict future economic developments perfectly, it remains a challenge to take advantage of them. If tactical choices aren't the key to investment success, what is? An...
Hedge funds: financial rock stars or has-beens?
The hedge fund industry is a fascinating and mysterious world. With smart strategies, the 'rock stars' of the financial sector aim to achieve stable returns with low risk, regardless of market conditions. With this, they pursue the holy grail of investing, namely...
The Price of a Peaceful Night’s Sleep
The essence of investing lies in consciously taking risks. It may sound like well-thought-out wisdom, but it offers little practical guidance. Investors must first ask themselves whether they want to take any risks with their wealth at all. Nowadays, safe investments...
Innovatie op de Secondary Private Equity Markt
De sterke groei op de tweedehandsmarkt voor private equity investeringen heeft geleid tot innovatieve transactiestructuren. De aanhoudende ‘dorst’ naar liquiditeit heeft potentiële gevolgen voor alle private equity investeerders. Zoals vaker kan innovatie op...
For sale: Second-hand Private Equity Portfolio – Condition: As good as new
Replacement is inherent to the structure of private equity investments. After a fund’s lifetime ends the investor needs to find a replacement to maintain exposure to the asset class. In the event that an investor is not satisfied with the size of the allocation or the...
Smooth seas do not make skilled sailors
The below article has been published in Investment Officer in June 2023 Private equity is gaining in popularity, which is not surprising given the strong returns the asset class has achieved in the past. However, as of 2023, the market for private investments looks...