I don’t find a lot of information on the long term performance on these assets. Almost no information on fees and commissions. Even Blackstone, who has a very good long term performance record, disclosed that their new private equity offerings were 1 – 5 % below the S&P.

I have modeled the eastern interconnect of the electric grid with its 45,000 power plants but I have no clue how to forecast performance for any of these assets. Each one is so unique. It has no history. The same type could have widely varying performance. No thanks. It sounds like a sales job not a solid investment.

Stars on the other hand has a 26 year history that outperforms the S&P by a factor of 17. It outperforms the S&P by 19 percentage points per year over the past 14 years. Where is there an incentive to invest in these alternative assets?

They tell me the drawdown is less but that is because they don’t change the price in a correction. Liquidity is a serious problem. Hedge fund personnel change all the time.

I don’t forecast prices because I don’t need to and because no one can. I definitely don’t forecast performance of these type of investments.