This is a summary of links featured on Quantocracy on Sunday, 06/16/2024. To see our most recent links, visit the Quant Mashup. Read on readers!
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Private Equity May Not Be the Diversifier We Think (Due to Volatility Laundering), But Private Credit Could Be [Alpha Architect]Volatility laundering causes the risk-adjusted returns and the diversification benefits of private equity to be significantly overstated. However, the problem of volatility laundering is not a problem for all private investments, specifically not for high-quality, floating rate, private credit. Advisors (and investors) considering allocations to private equity are often presented with charts like