Consider private equity as way to reduce risk, says F&C's Mair

iw investment trust forum 2008

Private equity is an asset class investors should be considering to bring down the risk of their por...

Private equity is an asset class investors should be considering to bring down the risk of their portfolio in volatile times, said F&C. The group's Hamish Mair said private equity volatility is actually lower than stock markets and portfolio theory predict, and by adding a risky asset with a low correlation to other investments, it will reduce the overall risk of the portfolio. Mair runs the F&C Private Equity Trust, a closed-ended fund of funds that has been running since 1992. He said it offers investors exposure to unquoted, illiquid assets that are tricky to access directly. Curre...