'Alpha-flation': A private market syndrome
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DeeperDive is a beta AI feature. Refer to full articles for the facts.
IN PRIVATE equity (PE), there are more ways to calculate the alpha of a portfolio or fund than any other asset class. And in no sector other than private markets does investing in the average fund seem to go so poorly.
Should it be this way? Is the average private market fund a bad fund and the mean private market return a bad return? And if so, why?
In every other asset class, the average fund is one that hits its minimum threshold. The average fund, then, is not "exceptional".
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