Public markets vs Private markets
Friendly reminder on public vs private...
Public markets: pick the asset (beta).
Private markets: pick the manager (alpha).
Huge variance of returns across managers in private markets, and arguably also significant risk and less upside now given the crowding into that space.
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Also, another thought: if investors in aggregate move a large allocation from public equity to private equity, then who will be left for PE to exit via IPO to?
If you take it to the extreme, weird things can happen...
hmmmm, dumb thought alert:
the more people invest in private equity, the more private companies become quasi-public
the more people invest in passive, the more public equities become quasi-private
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