PRINT THIS PAGE Moving in tandem?10/07/2002. Source: Helix Associates. John Barber & Laurence Zage 
 Many investors went into private equity believing that it would add an element of diversification to their portfolios. However, recent turbulence in both the public and private equity markets has caused some surprise. John Barber and Laurence Zage of Helix Associates ask to what extent the two markets are correlated.
There is a natural correlation between public and private equities, the authors claim, but it is masked by the inefficient valuation of portfolios in the latter. Some of the best managers in the asset class can provide some diversification, but investors should not underestimate the extent to which movements in the public markets can affect private equity investments.
Copyright © 2002 Investments and Pensions Europe
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This article first appeared in Investment & Pensions Europe. For more information, please visit www.ipeonline.com or www.ipe-newsline.com
John Barber and Laurence Zage are a director and an associate, respectively, of Helix Associates in London.
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