Replicating Private Equity in Public Markets with Verdad's Brian Chingono
Excess ReturnsJanuary 28, 202100:59:53

Replicating Private Equity in Public Markets with Verdad's Brian Chingono

There are many misconceptions about private equity. Most investors see it as a domain where high net worth investors and institutions earn returns that can't be achieved via public markets. Investors typically also view the success of private equity as the result of the ability of private equity firms to go in and make operational changes to businesses to unlock their true potential. But it turns out the reality is much less exciting than that. As is the case in public market investing, it turns out that fundamentals and valuation are a large driver of returns.

In this episode, we speak to Brian Chingono of Verdad Capital about the true drivers of private equity returns, and how those returns can be replicated using a systematic strategy in public markets. We also cover some other interesting areas of Verdad's research, including how high yield spreads can be used to identify opportunities for value stocks and whether bond upgrades and downgrades can be predicted via machine learning.

ABOUT THE PODCAST
Excess Returns is an investing podcast hosted by Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau), partners at Validea. Justin and Jack discuss a wide range of investing topics including factor investing, value investing, momentum investing, multi-factor investing, trend following, market valuation and more with the goal of helping those who watch and listen become better long term investors.

MORE ABOUT VERDAD & BRIAN'S RESEARCH

VERDAD ADVISORS:
https://verdadcap.com

LEVERAGED SMALL VALUE EQUITIES:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2639647

ABOUT BRIAN:
https://verdadcap.com/brian-chingono

FOLLOW BRIAN ON TWITTER:
https://twitter.com/verdadcap_quant

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https://www.validea.com/excess-returns-podcast

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https://www.validea.com/

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FIND OUT MORE ABOUT VALIDEA CAPITAL
https://www.valideacapital.com/

FOLLOW JACK
Twitter: https://twitter.com/practicalquant
LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN
Twitter: https://twitter.com/jjcarbonneau
LinkedIn: https://www.linkedin.com/in/jcarbonneau/
Justin Carbonneau, Jack Forehand, Private Equity, Verdad Advisors, Private Equity Replication, Brian Chingono, Excess Returns Podcast, Leveraged Small Value Equities, Small-Cap Value,