scroll to top
0

EBSCO Auth Banner

Let's find your institution. Click here.

Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting.

  • Academic Journal
  • Stafford, Erik (AUTHOR) estafford@hbs.edu
  • Review of Financial Studies. Jan2022, Vol. 35 Issue 1, p299-342. 44p.
  • The contributions of asset selection and incremental leverage to buyout investment performance are more important than typically assumed or estimated to be. Buyout funds select small firms with distinct value characteristics. Public equities with these characteristics have high risk-adjusted returns relative to common factors. Adding incremental leverage to a publicly traded stock portfolio increases both risks and mean returns in this sample. Direct investments in private equity funds earn lower mean returns than a replicating strategy designed to mimic these key economic features of their investment process with public equities and brokerage loans. [ABSTRACT FROM AUTHOR]
Additional Information
Copyright of Review of Financial Studies is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
sponsored