“Research indicates that if we know when buy-out managers invest and divest in various companies, the value can be captured by investing in similar publicly traded securities…”
Who said it: Matthew Peakman, head of funds derivatives trading at Nomura.
In Context: The above quote is from an article in the FT about a new index that Nomura has created called PERI. Nomura’s press release about the new fund says that PERI is the “first daily investible index which targets returns similar to those which may be achieved through a global broad-based investment in private equity buyout funds”. The index is based on research that shows that a substantial portion of PE returns can be attained through an investment in the “public market equivalents”, implying that PE managers are as good at deriving returns from market momentum, as exploiting other skills such as selecting targets and executing operational improvements, explains the FT. Nomura is in talks with asset managers about launching exchange traded and mutual funds that would track the index. (Image source: Stony Brook University AMS )
Where we found it: FT