public market equivalent

also referred to as: pme · public market equivalents

3 statements across 2 episodes · 0 bullish · 1 bearish · 2 people on the record · first statement Apr 5, 2021 by Dominic Garcia · across every show →

Everything said about public market equivalent, oldest first

Apr 5, 2021 neutral
Insight
Garcia: Private asset tracking error against public benchmarks catches up over 3-5 years
“The tracking error that we're generating from our private assets, a good chunk of that is really this lagged effect relative to our public market equivalents. It catches up over a three-year rolling, a five-year rolling period, but that's really where the slip…”
Dominic Garcia Apr 5, 2021 ▶ 32:45 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Apr 5, 2021 neutral
Insight
Garcia: Private equity should be evaluated for PME spread, not headline IRR
“The reason why you buy private equity isn't for the total return, in my view, it's the relative return to your PME, because a private equity portfolio or private equity management, let me just give you an example. Let's say they generate a 12% IR. Well, if you…”
Dominic Garcia Apr 5, 2021 ▶ 44:36 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
Sep 2, 2024 negative
Opinion
Eichhorn: Unmarked private assets are typically riskier than public equivalents
“Private assets don't get marked at all, and that doesn't make them less risky. In fact, they're probably more risky, typically, than a public market equivalent.”
David Eichhorn Sep 2, 2024 ▶ 50:33 David Eichhorn - Serving Clients and Reducing Risk at NISA (EP.403)
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