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The median VC fund doesn't even beat the S&P. It operates under power laws, so the top 5% get basically the money and everyone else goes broke.
by jmsdnns 12y ago
The median VC fund doesn't even beat the S&P. It operates under power laws, so the top 5% get basically the money and everyone else goes broke.
- vasilipupkin 12y agothey don't go broke - they still generate positive returns. I am not sure why they actually need to beat S&P 500. I think this is misunderstanding portfolio theory. As long as they are not perfectly correlated with investors overall portfolios and they have positive returns, it's ok for them not to beat S&P