In the past 25 years, institutional asset managers have radically shifted their portfolios to owning as much as 40% of assets in illiquid private equity.
"There's nothing more overbought today than private equity," says Dan Rasmussen.
Why? Dan explains why investing is a game of “meta analysis.” “It’s not about what you think. It’s about what you think relative to what everyone else thinks,” he says. CLICK HERE to watch the full interview.
That’s why Dan is so concerned about the race to own more private equity as a percentage of assets. “The minute something becomes so expensive, especially when the smart money is 20x overweight something, you’ve gotta step back and say, ‘Maybe we should fade that,’” Dan says.
Maybe illiquid, 10-year capital lock-ups isn’t a great idea if everyone is doing it? Hmmm.
Watch the entire Hedgeye Investing Summit discussion between Dan and Keith here.
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