Five Investing Heresies
I spent the weekend with Dan Rasmussen’s talk during last year’s Capital Camp event. I first got to know about him through “Invest Like the Best” podcast by Patrick O’Shaughnessy, CFA couple years ago. Since then, I learned a lot from his contrarian view on investing.
In this talk, he discussed the investing heresies, especially on the illiquid private asset classes. In recent years, institutional LPs increasingly believe that those asset classes will beat its public market peers, hence the shift towards the asset classes (in return, resulted in the historical amount of dry powder). In other words, most LPs believe that investing in such illiquid asset classes will provide outsize returns and alleviate their fund performance. Dan provided some “empirical skepticism” over such belief.
This is a must view video for institutional LPs when it comes to efficient asset allocation!
