Sunday, May 22, 2016

modern portfolio theory - Private Equity: Direct Alpha vs Excess IRR


I'm trying to understand the advantages and disadvantages of using Direct Alpha versus Excess IRR for computing excess returns over a market index for private assets.



Wikipedia references a highly informative paper that compares the Direct Alpha against PME, PME+, mPME, and KS-PME and discusses the limitations of these as well as analyzes the correlations between them.


I'm looking for a similar resource to that compares the two in my title.




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