COD: Listed Private Equity Funds

Abstract

We studied the performance of thirteen Private equity firmslisted in US and having operations in North America with diversified investmentportfolio. The Sharpe and Treynor ratio results indicate that majority of thesePE firms beat the major US stock indices. Further using subset regression, wemade an effort to find out the best predictors for each of the PE firms. Thepredictor variables taken to establish the relationship include DJIA, NYSE,NASDAQ, SP 400, SP 500 and SP 600.  Thepredictive relationship with market variables could not be established for majorityof firms with seven out of the thirteen funds showing no significantrelationship with market variables and so this means that for these seven privateequity firms the performance of the market is irrelevant. The predictiverelationship could be established only for six out of the thirteen firms andfor three out of the six private equity firms the best predictor relationshipwas formed with single market variable and as the variables increased nosignificant relationship was formed.