Asset managers selling private assets to everyday investors claim to have found investing’s holy grail: lower risk (or at least less volatility) and better returns. Is that true? The answer is mixed.
The first claim is fictional. Private securities’ prices only seem less variable because we don’t see them change throughout each trading day. As AQR Capital Management co-founder Cliff Asness puts it, their ostensible stability is “volatility laundering.” READ MORE