Equity

Amid the unfolding global pandemic and economic downturn, equities plunged during the first quarter. The S&P 500 Index returned -19.6% and the MSCI World Index posted three-month returns of -21.05%,…

Managers of private equity (PE) and venture capital (VC) firms have the same goal in mind: maximizing returns. Yet PE buyout and VC early-stage funds go about it in very…

The internal rate of return is dead. Long live the IRR. “Hey, the IRR looks soooo close to the DaRC!” Michele observed. Michele is our chief technology officer at XTAL…

“I therefore claim to show, not how men think in myths, but how myths operate in men’s minds without their being aware of the fact.” — Claude Lévi-Strauss As ever…

The internal rate of return (IRR) is not a scientific method to calculate performance. Far from it. Fund managers can manipulate, misreport, or altogether fabricate their results, making them unreliable….

Private equity (PE) investment returns are neither reliable nor predictable. Many of my clients are prepared to accept these as facts. But one private equity myth is harder to dispel,…

“Perhaps what cannot be wholly understood cannot wholly be destroyed.” — Anthony Burgess, Kingdom of the Wicked Three myths about the reliability, predictability, and resilience of private equity (PE) performance…

Defining DEI Diversity, equity, and inclusion (DEI) initiatives can feel like a “check-the-box” exercise at many companies. But at PNC we’ve made DEI a priority in our investment management services….

Every mismatch between GAAP metrics and business reality is a potential alpha opportunity. You can find significant alpha in the mechanics that drive GAAP accounting. Investors can buy companies with…

This article is based in part on material drawn from “The Dawn of a New Active Equity Era” by C. Thomas Howard and Return of the Active Manager by C….