Last week we launched eFront VaR, an innovative product to help limited partners assess value-at-risk and achieve their portfolio construction goals.
In this month’s edition of Frontline we look at how investors can further enhance their risk-return profile by thinking tactically and exploiting private equity’s inefficiencies.
For instance, when it comes to geographic categories, the dominance of the US and Europe has led to a certain lazy lumping together of the “rest of the world”, which tend to be seen as “emerging” markets. However, you may have noticed that there are developed markets outside of the West!
As ever, one must tread carefully. According to the UN, South Korea is a “developing economy”. Meanwhile Singapore and Hong Kong are often bases for investments in other markets. Using Pevara data, our analysis of Asia-Pacific’s developed markets suggests there is an interesting opportunity for those investors seeking to off-set the increasing maturity of Western markets, while limiting risks.
Portfolio construction is a highly complex undertaking. By providing both innovative, ready-to-use products such as eFront VaR, as well as empowering LPs through access to industry-leading data, we hope to be very much part of the solution.
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