Barry Ritholtz, Ritholtz Wealth Administration Chairman and CIO & “Masters in Enterprise” host, discusses risk-reward and the much less liquid elements of the market:
“I’m reminded of the phrases of the nice investor, Groucho Marx, who mentioned ‘I don’t need to be a member of any membership that may have me.”
Once we have a look at alternate options and that’s the whole lot from enterprise to hedge fund to non-public fairness, those you will get into are likely to to not be the highest performing funds. In case you have a billion {dollars} and also you’re properly related, I could make just a few telephone calls and get you into the highest decile of alts, however most buyers don’t have entry to that.
So you find yourself in a circumstance the place you may’t deal with the universe of alts like you may the marketplace for shares or bonds. You find yourself with a really fats head / lengthy tail of a handful of alpha turbines after which an entire lot of pricy under-performers…”
2021 Made The Market Look Straightforward
Supply: Bloomberg, August 2nd, 2022
