Asset allocation for year 2021
| absolute return | 23.5% |
|---|---|
| venture capital | 23.5% |
| leveraged buyouts | 17.5% |
| foreign equity | 11.75% |
| real estate | 9.5% |
| bonds and cash | 7.5% |
| natural resources | 4.5% |
| domestic equity | 2.25% |
Absolute return
The portfolio is
invested in two broad categories: event-driven strategies and value-driven
strategies. Event-driven strategies rely on a specific corporate event, such
as a merger, spin-off or bankruptcy restructuring, to achieve a target
price. Value-driven strategies involve hedged positions in assets or securities with prices that diverge from their underlying economic value.
benchmark
Absolute Return: Credit Suisse and Inverse Wilshire 5000
Composite
- MNA (IQ Merger Arbitrage ETF)
- PKW (Invesco BuyBack Achievers™ ETF)
- CSD (Invesco S&P Spin-Off ETF)
- GURU (Global X Guru Index)
- QED (IQ Hedge Event-Driven Tracker ETF)
- ARB (AltShares Merger Arbitrage ETF) inception date:2020/5/7
- MRGR (MERGER ETF)
2021.06.14: None of above ETFs has negative corr coefficient with VTI during 2020 melt-down. ARB is excluded due to inception date.
- DEEP (The deep value etf)
- GVAL (Cambria Global Value ETF)
- QVAL (U.S. Quantitative Value ETF)
- IVAL (International Quantitative Value ETF)
- FVAL (Fidelity Value Factor ETF)
- DSTL (Distillate U.S. Fundamental Stability & Value ETF)
- NULV (Nuveen ESG Large-Cap Value ETF)
- SLVY (SPDR S&P 600 Small Cap Value ETF)
- IWS (iShares Russell Mid-Cap Value ETF)
- VTV (Vanguard Value ETF)
Foreign equity
VEU/VXUS
iShares MSCI World Small Cap UCITS ETF
Domestic equity
VTI
Leveraged buyout
Leveraged Buyouts: Cambridge Associates Global Leveraged
Buyouts
- PSP (Invesco Global Listed Private Equity ETF)
- PEX (GLOBAL LISTED PRIVATE EQUITY ETF)
- IPRV (iShares Listed Private Equity UCITS ETF USD)
- SOFINA (42% in venture and growth capital funds)
- Brederode (1554.83/(1554.83+1149.83) = 57%. If consider SOFINA and Brederode, it would be 61%)
SHOULD invest in private equity fund instead of private equity asset management company.
for example:
Invest EQT venture fund (https://www.eqtgroup.com/About-EQT/Funds/Active-Funds/eqt-ventures/), but not EQT AB company.
Natural resources
Equity investments in natural resources—oil and gas, timberland and
agriculture—share common risk and return characteristics: protection
against unanticipated inflation, high and visible current cash flow and
opportunities to exploit inefficiencies.
- DBC
- Vanguard Material ETF (only invest in US)
- GUNR (FlexShares Morningstar Global Upstream Natural Resources Index Fund)
- GNR (SPDR S&P Global Natural Resources ETF)
- URNM (North Shore Global Uranium Mining ETF)
- WOOD (https://www.ishares.com/us/products/239752/ishares-global-timber-forestry-etf)
Real estates
VNQ, VNQI (對NRA不利的withholding tax問題)
IWDP
EPRA (749M AUM, best expense ratio and # of holdings)
GLRE
HPRD
20210328延伸閱讀
https://finance.ffaarr.com.tw/2020/06/reits-etf-uk.html
Venture capital
Venture Capital: Cambridge Associates Global Venture Capital
- VNV Global
- Vostok emerging finance
- Kinnevik (only 15% asset in unlisted company)
- Softbank group (as Dec. 20 2020, Link)
- 13% + 4% in SVF1 + SVF2
- 49% in BABA
- 7% in softbank
- 6% in T-mobile
- 9% in ARM
- 8% in listed companies
- 4% in others
https://valueandopportunity.com/2018/01/15/softbank-masa-son-mad-genius-pumping-the-start-up-bubble-or-visionary-capital-allocator-part-1/
https://valueandopportunity.com/2018/01/22/softbank-part-2-sum-of-parts-valuation-and-dont-forget-the-taxman/
- Molten (Draper Esprit)
- JAFCO
- investor AB
- Baillie Gifford - The Schiehallion Fund (MNTN ords.)
Must reads
- https://valueandopportunity.com/2018/11/09/how-to-invest-into-venture-capital-listed-vehicles-part-1/
- https://valueandopportunity.com/2018/11/28/how-to-invest-into-venture-capital-part-2-augmentum-vostok-others/
Bonds and Cash
- BNDW
- TIPS (real risk-adjusted asset)
Fixed duration target
- IBDN
- IBTB
Global government bond ETF
https://finance.ffaarr.com.tw/2022/03/global-treasury-etfs.html
Conclusion
Among all asset classes, leveraged buyout (or private equity) and venture capital are the most difficult parts for retail investors.
Investors need to have
- knowledge to distinguish good funds from bad funds
- network to get chances to participate in
- wealth to invest (most of them have minimum entry amount)
Possible chances are public companies whose main business are direct investment in private equity or venture capital, such as VNV global or Vostok emerging finance.
=================
2021.06.12
Private Equity Holding AG
Latest NAV: 140 CHF
Current Price: 80 CHF (60% discount)
NAV growth rate: 7.6% (from 2007~2021)
dividend yield: 2.41%
Large discount is a concern.
fee is quite high
market cap too samll
---------------------------------------------
Other candidate
---------------------------------------------
Spice Private Equity (SPCE) - Pass, market cap too small
Castle Private Equity AG - Pass due to disappointed NAV growth in the past and small market cap
Treasure ASA (T1A) - Pass due to invest in maritime and logistics industries (capital intensive) only.
Scherzer (PZS) - Pass, information is in German only.
Deutsche Beteiligungs AG (DBAN) - direct invest & asset management
Shareholder Value Management AG (SVE) - Pass, asset management company
Brockhaus Capital Management AG (BKHT) - Pass, only 2 holdings
Airesis (AIRE) - Pass, only 2 holdings
Blue Cap (B7E): pass, small market cap. direct private equity investment companies
Deutsche Balaton (BBHK): pass, small market cap. direct private equity investment companies
MBB SE (MBB): direct private equity investment companies
MedCap (MCAP): pass, small market cap. direct private equity investment companies
Ratos (RATO-B): direct private equity investment companies
Mutares: pass, small market cap. direct private equity investment companies
HgCapital
Trust plc (LON:HGT): direct private equity investment companies
Conversus Capital LP (AMS: CCAP): fund of fund
ICG Enterprise Trust : hybrid
AP Alternative Assets LP (AMS: AAA): hybrid, suspension trading
KKR & Co. LP (NYSE:KKR): hybrid
SVG Capital plc
HarbourVest Partners
NB Private Equity Partners
apax global alpha
Indus Holding
Altamir SA
https://valueandopportunity.com/2015/06/03/altamir-sa-isin-fr0000053837-french-pe-at-an-attractive-discount-or-ceo-self-service-vehicle/
https://valueandopportunity.com/2015/06/17/update-altamir-sa-no-ceo-self-service-vehicle-but-still-the-same-fees/
Capman OY
ACKERMANS & VAN HAAREN
https://valueandopportunity.com/2014/01/07/ackermans-van-haaren-mini-berkshire-from-belgium/
P3 PE (ISIN DE0001734994)
Aurelius
Pantheon
driving forces
1. underlying performance: long term excellent track record
2. liquidity (market cap shall be larger than 500M USD)
invest concern
1. management fee
2. leverage
opportunity
1. NAV gap (any catalyst?)
=============================
2021.06.23
https://alphaarchitect.com/2021/06/22/private-equity-is-there-anything-special-there/
https://alphaarchitect.com/2019/11/07/what-returns-should-investors-expect-from-private-equity/
https://alphaarchitect.com/2016/05/16/replicating-private-equity-with-value-investing-aqr-award-winner/
https://alphaarchitect.com/2015/08/06/private-equity-replication-with-leveraged-small-cap-value-stocks/
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