Alternatives’ Alpha To Grow Scarce: Study
December 13, 2011
• Stephen Taub
Private equity and hedge funds will find it harder to beat the market going forward than they have in the past, according to a new study by J.P. Morgan Asset Management. The study, a 57-page document published recently, projects that median returns on PE during the next ten to 15 years will match that on a mid-cap long-only stock portfolio, while the median hedge fund will underperform that portfolio. Such a performance would come in sharp contrast to returns over the past....