Key Takeaways
- • Six private equity stocks in the article's basket have fallen an average of 37.6% since a Executive Order was signed 14 months ago, with every name down at least 20%.
- • The article argues private equity has avoided major blowups so far, but says that does not mean it has been a good investment for public-market holders.
- • Growth of PE managers into dominant financial players followed years of strong returns in the zero- and low-rate era from the financial crisis through Covid.
- • The piece frames the rush to offer alternative assets to retail investors through the 'ducks are quacking' adage, suggesting Wall Street supplies access when demand appears.
Summary
According to Seeking Alpha, private equity firms and their managers became the new masters of the financial universe after years of strong returns during the zero- and low-rate era that ran from the financial crisis through Covid. The article notes that the sector has not suffered any major blowups so far, but argues that this absence of failures does not mean private equity has been a good investment.
The article's central data point is a basket of six PE stocks, which it says are down an average of 37.6% since an Executive Order was signed 14 months ago. Every stock in the basket is down at least 20% over that period. The source ties this underperformance to a broader question about whether investors are getting what they wanted from the asset class.
The piece invokes the Wall Street adage "When the ducks are quacking, feed them," which holds that when investors seek access to a particular type of investment, the industry should supply it. The excerpt available for this summary does not fully specify which investment vehicles are being offered, and the remaining text is incomplete, so this summary is limited to the points stated above.
The article's central data point is a basket of six PE stocks, which it says are down an average of 37.6% since an Executive Order was signed 14 months ago. Every stock in the basket is down at least 20% over that period. The source ties this underperformance to a broader question about whether investors are getting what they wanted from the asset class.
The piece invokes the Wall Street adage "When the ducks are quacking, feed them," which holds that when investors seek access to a particular type of investment, the industry should supply it. The excerpt available for this summary does not fully specify which investment vehicles are being offered, and the remaining text is incomplete, so this summary is limited to the points stated above.
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