Diversification and Fund Performance-An Analysis of Buyout Funds


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Date

2020-06-23

Publication Type

Journal Article

ETH Bibliography

yes

Citations

Altmetric

Data

Abstract

This paper studies the relationship between portfolio diversification and fund performance, based on an unexplored, hand-collected dataset of buyout funds. The dataset comprises detailed information at the level of portfolio companies, which allows measuring the concentration of the fund portfolios towards individual companies, industrial, and geographical focus. Our results suggest that diversification within, but not across industries, associates with higher buyout fund performance. We do not find a significant relationship between geographical diversification and performance. These results partly contradict results documented in prior literature.

Publication status

published

Editor

Book title

Volume

13 (6)

Pages / Article No.

136

Publisher

MDPI

Event

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

performance; buyout funds; diversification; systematic risk

Organisational unit

Notes

Funding

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