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"With the stock and bond markets stumbling in unison, investment firms and financial advisers are pushing so-called alternative funds harder than ever."
"Many institutional investors, glutted with private assets, are twiddling their thumbs waiting to get their money out. Private-equity firms are sitting on more than 29,000 companies, valued at $3.6 trillion, that they can’t unload. Returns for many alternatives have stagnated. Why buy what these folks are trying to dump?"
"Over the 10 years through June 30, 2024, the median endowment earned a 6.7% annualized total return net of fees, according to the 2024 NACUBO-Commonfund Study of Endowments. That was far behind the 12.8% annualized total return of the S&P 500 over the same period—and not much better than an ETF with 60% in stocks and 40% in bonds, which grew at 5.9% annually."
"Many of these institutions have privileged access to the world’s best managers of alternative assets— yet barely managed to beat out a boring, dirt-cheap ETF."
I am moved periodically to look into alt funds. I usually find they have very high expenses and may behave in unexpected ways during certain times. Therefore, I pass...
Private-equity/credits aren't required to mark-to-market, so most don't. Some may do quarterly valuations, others annual. So, their reported performances are suspect.
Comments
Edit: perhaps Vanguard may able offer some version of private equity for small investors.
I usually find they have very high expenses and may behave in unexpected ways during certain times.
Therefore, I pass...
But some exposure may be OK.