re: Private Equity investment. Anyone used PE to generate alpha?

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I read a recent report by INVESCO that argued that the correlation was only 0.46 between the stock market and PE firms.

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Look around some more. It’s hard to find Asia specific data, but US buyout funds tend to have correlations north of .75.

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Honestly, net IRR >15% seems insanely impressive to me (I guess I'm easily impressed) particularly if it's uncorrelated and the risks are lower. But that also makes me think they're just leveraging up and calling it a day.

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15% is stout as hell, but I just don’t think you’ll find the lack of correlation you seek. Risk-adjusted returns are notorious difficult to find for PE, but there are sources that would suggest the net returns aren’t great there either.

Asia PE is probably a different story given the inefficiencies that likely exist there, but the data is hard to find.

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Also, side note, did you study at Stanford? Kudos if that's the case.

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I was sent an invite to apply to Stanford, so thank you, but I just use the S to match my username and make it easy to find posts while browsing.