Dan Rasmussen over at Verdad Capital has a pretty good article providing a different view on the “no/low volatility” of private equity.
When Private Funds Are Publicly Traded
When you have private equity biased firms saying that the annualized volatility (standard deviation) is closer to 10%, then you start ruffling feathers of people in the public equity space.
10% annualized standard deviation is equivalent to that of a 60% equity and 40% fixed income, or what we call a Balanced portfolio.
The main problem is that
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