Cboe - Managing Risk Exposures to Private Equity Through Public Equity

Managing Risk Exposures to Private Equity Through Public Equity

Global Investment Research | Equities

Private equity has emerged as an important asset class for asset allocators, but the illiquidity and relative inaccessibility of the asset class presents challenges for investors seeking to integrate it into their portfolios. This research indicates that private equity is more similar to public equities in the form of Russell indices than usually assumed. Specifically, Russell 2000 options are shown to be a good hedge of private equity risk exposures, using both tactical and systematic hedges. Learn more in this piece from FTSE and Cboe.

Download the Research Paper

Email *

First Name *

Last Name *

Company *

Title *

Country *

Marketing Consent * I acknowledge that Cboe may contact me about Cboe activities, products, and services. I understand that I can unsubscribe from communications from Cboe at any time.

Privacy Consent * Yes, I agree to Cboe's Terms and Conditions (https://www.cboe.com/terms/) for use of websites and Cboe's Privacy Notice and Policy (https://www.cboe.com/privacy) and acknowledge that my personal data will be processed in accordance with the policy.

Comments

There are important risks associated with transacting in any of the Cboe Company products or any digital assets discussed here. Before engaging in any transactions in those products or digital assets, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/us_disclaimers/. These products and digital assets are complex and are suitable only for sophisticated market participants. These products involve the risk of loss, which can be substantial and, depending on the type of product, can exceed the amount of money deposited in establishing the position. Market participants should put at risk only funds that they can afford to lose without affecting their lifestyle.