Alternative investment industry fails to live up to expectations as hedge funds and venture capital operations are unable to impress in bear market conditions
Q: What kind of return would you expect on a private-equity fund? A: About 20%. Q: What kind of return would you expect on a hedge fund? A: About 20% Q: Should those types of investments consistently beat mainstream, big-cap stocks? A: Of course, that's why they were created. It may be time to think again. In the past decade, two big alternatives to investing in traditional, mainstream equity and bond markets have emerged: private-equity funds, including both venture capital and leveraged-buyout operations, and hedge funds. Both have created huge industries, based on a simple,...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes