company logo

Insights / Blog /

CEO Talk (5/9) - Performance Dispersion and Diversification Play a Major Role

Share this article:


Published:

January 3rd, 2023

Categories:

Learning

Author:

Stableton


Bill Kelly, the President and CEO of CAIA, sat down with Stableton’s CEO Andreas Bezner to discuss various topics driving private markets today. This 2:50-minute video is the fifth in a series of excerpts from that 26-minute conversation. Bill Kelly starts by pointing out that the performance gap between the median and the top quartile funds in the venture capital space is a whopping 2000 basis points, requiring investors to seek profesisonal assistance in navigating this challenge. Andreas Bezner, our CEO, reminds the audience that venture capital investing is subject to the power law, i.e. the idea that a small number of investments will generate the majority of returns. He continues to explain that three to four investments cannot possibly be representative of VC performance characteristics due to the enormous dispersion. Andreas suggests either accessing a diversified product or building a portfolio oneself with products that feature low investment minimums. He also observes the market moving away from concentrated blind pool funds to diversified thematic porfolios, and eventually even to thematic private market indices.



Here's the video of the complete conversation between Andreas and Bill. 26 well-invested minutes into private market insights:


The Elusive Concept of Diversification

How "The Everything Bubble" has changed the rules of the game


Insights and Thought Pieces

Article imageArticle image

Themes • LearningJan 23, 2023

Growth Equity – An Explainer

A distinct asset class with different characteristics to growth stocks and private equity

Contact Us

Call Us

Contact Us

+41 41 552 5900

Monday to Friday 8:00 a.m. to 6:00 p.m. (CET)

Direct contact

Professional Investor Desk

Contact Us

+41 41 552 5911

Private Investor Desk

Contact Us

+41 41 552 5977

Poststrasse 24, 6300 Zug, Switzerland

How to Reach Us
How to Reach Us

How to Reach Us