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Price discovery can be an issue when it comes to private equity, as the assets don’t trade on public markets and in many cases the managers of the portfolio price the portfolio assets themselves.
In this edition of Market Factors we’ll start with a cynical look at private equity and show a roundabout way to invest in the trend. The second section covers dissention in the ranks of Morgan Stanley strategists and the diversion covers a diet myth.
Equities
A picks and shovels way to invest in private equity
North American financial advisors have largely abandoned actively managed mutual funds because of fund managers’ inability to keep pace with the index. This robbed the brokers and their employers of a rich source of profits that needed replacing.
Private equity is one of th