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Yes but how efficient is the market for private equity? It seems like all kinds of information in the private equity market is potentially hidden from bidders,
by someguydave 11y ago
Yes but how efficient is the market for private equity? It seems like all kinds of information in the private equity market is potentially hidden from bidders, including past prices.
- paulpauper 11y agoA VC fund averages slightly better than the market, suggesting possible inefficiencies
- theseatoms 11y agoBut VC funds take on significantly more risk than a broad market, long-only index fund. So VCs need to yield a proportionately higher return, if we're comparing apples to apples. https://en.wikipedia.org/wiki/Sharpe_ratio https://en.wikipedia.org/wiki/Sharpe_ratio