docneil88 wrote:Interesting article Larry. Thanks.
For anyone who wants to invest in private equity notwithstanding Larry's case against it, there is an ETF available called Powershares Global Listed Private Equity Portfolio, ticker PSP. Its annualized return of the 5 years ending 3/30/13 is -5.5% vs. +8.5% for the Vanguard Small Cap Index Fund, NAESX. PSP's expense ratio is 0.71%. Best, Neil
shows me a 2.7% expense ratio. Perhaps they are including the management fees of the underlying vehicles? That will probably cancel out any upside in investing in this asset class.. As the comparisons imply it really is a form of specialized financial stock.
I note an Alpha of 4.0 and I suspect that is some kind of statistical mirage-- huge, otherwise, against a benchmark.