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People allocating capital in VC funds are trying to diversify a very large portfolio, not just picking a high IRR asset. VC is very uncorrelated to S&P 500 perf
by FanaHOVA 2y ago
People allocating capital in VC funds are trying to diversify a very large portfolio, not just picking a high IRR asset. VC is very uncorrelated to S&P 500 performance as most of the best VC vintages were during public market downturns.
- dehrmann 2y agoThat's only half of it. They also have to justify their jobs. Anyone can manage a 60/40 portfolio with index funds, but pensions are complicated, so they need complicated investments.