Public Equity
topic on 4 shows · 23 statements across 22 episodes
We Live to Build 
WTF is with Nikhil Kamath 
Capital Allocators 
20VC
23 statements about Public Equity, every show
Andreessen: a16z has long considered launching credit and public equity funds
“So the two that we've kicked around for a long time are public equity on the one hand and then credit on the other hand. And I think there's really good reasons to do both. And then there's issues with both in terms of issues specifically with respect to runni…”
MacDonald: Go passive in low dispersion and active in high dispersion
“Where there's dispersion, you go active. Where there's low dispersion, like public equity, you go passive.”
Fallows: Historical private equity returns average 10% to 12% versus 8% to 10% for public equities
“I think it's fair to say that on average, historically, the returns of private equity have been somewhat higher than public equity. Not three or four times as high, but if public equity is delivering eight to 10%, maybe private equity is delivering 10 to 12%.”
Reynolds: LPs Avoid Direct Public Stock Picking but Co-Invest in Risky Privates
“Very few institutional investors organizations are actively managing public equity portfolios. They're not choosing stocks directly, but almost all of them are choosing in private companies directly and co-investing in companies where they have less informatio…”
Public equity offers lower expected returns as the price of liquidity
“I think private equity is true equity return, and public equity is a discounted or a lower expected return.”
Kamath: I completely stopped buying public equities last two months
“I'm not even buying public equity anymore. I'm not even buying stocks. I've just stopped. Yeah. Last one, two months, I've just.”
Small: PE firms must build public market teams internally for effective collaboration
“Building it internally was important because the relationships of the people were a key to making it work. It wasn't just saying, Geez, Berkshire partners should have a public firm. Let's go hire a team to go do it. That would not get the collaboration that we…”
Asness: Private equity volatility is higher than public markets despite reported metrics
“Where private equity is well to the left of public equity, and it's concentrated off in levered equity. So if that's vol on the x-axis, it is not to the left.”
Marshall: Public markets drive most institutional returns for the first seven years
“I would say at the early stages, having really strong public equity and hedge fund, Expertise is really important because that's where most of the assets are going to live. You can dream about getting into venture funds and buyout funds and all of that, but mo…”
Private equity-style public investing lost its edge when growth beat value
“So we started with the private equity approach to public equity investing, as you'd expect us to, because that's deep Fundamental analysis, and that's the only possible explanation for how you could have security selection alpha. That worked, actually, from ab…”
Falbe: Using Sharpe ratios to compare private and public equity is crazy
“People want to compare private equity performance to public equity performance, and some people out there who I don't think understand the math actually use sharp ratios to compare them. That's just crazy to me. I'm like, for crying out loud, if I could value …”
Falls: Northwestern holds high public equity allocation relative to peers
“We actually have a lot of it relative to our peers.”
Giannini: Private equity marks are legitimate and outperformance is real
“So I think what you're seeing in the private markets is actually what's happening. It's not that the value's Are inflated, or there's a lag factor. They're legitimate valuations, and it's why, by the way, you're in private equity. It just, sorry, it performs b…”
Vanguard private equity will outperform public equity by 200-500 basis points
“We feel confident that this private equity offer will outperform public equity, whether it's two, three, four, 500 basis points.”
Robertson: Oxford Endowment holds 20-25% private equity and roughly 52-53% public equity
“So about private equity sort of varies anywhere between 20 to 25%. And so the rest tends to be our risk appetite. It's probably more reflected in the public equity exposure of that. So our public equity today is around 50, I think 52, 53%.”
Martin: Wesleyan Will Always Hold a Larger Public Equity Portfolio Than Yale
“We have a much larger public equity portfolio than Yale does, and we probably always will.”
Indexing Private Equity Across Hundreds of Funds Underperforms Public Equities
“Some funds, particularly near us and then here on the East Coast, have decided to take the index method and invested with hundreds of partnerships. And what you find is you get the average return out of private equity, which is actually below public Equity.”
NEPC maintains an approved list of up to 400 long-only managers
“I think we have about 350 to 400 managers in long only overall, so probably 200 or so of those, or 150 to 200 are equity.”
Getty Trust private equity beats public equity by 6% over full cycles
“From studies we've done, we've known that our private equity returns are the highest asset class return that we have. We know that over full market cycles, it's a good full six percentage points above public equity or above the total fund return.”
Klein: Public and private equity share identical core dynamics despite different structures
“When it comes to public equity, well, that's really sort of similar dynamics and drivers as private equity, but different structures.”
Public equity represents roughly 40% of Notre Dame's endowment portfolio
“So our public equity bucket, which includes long short equity, is about 40%. But long short's about 10%, so a quarter of that.”
Heller: Reference checking is easier for private equity managers than public managers
“I found there's just a higher level of transparency often on the private side, where managers can really, really dive in and tell you exactly how they were adding value at companies. You can talk to the CEOs of the companies often because they're small busines…”
New managers underestimate the transition from analyst to decision-maker
“On the public side, when someone's new, it's a bit of a struggle because often that person hasn't been a trigger puller. So you're trying to make a bet on whether they can transition from being an analyst to being a portfolio manager. And often I think the ind…”