Reversion to the meanReader comment on: Thoughts on Romney's Victory Submitted by Lyle (United States), Jan 10, 2012 23:04 In More Money Than God (on Hedge Funds) it points out that if you have a successful strategy everyone piles on that strategy and your returns revert to the mean of the market or worse. Now this speaks specifically of hedge funds, but I suspect it's also true of private equity. So as everyone decided to move to private equity too much money came in forcing the returns downward. Or as Buffet has said you have innovators, imitators and idiots. Later stage private equity likely is in the third class. Note: Comments are moderated by the editor and are subject to editing. Other reader comments on this item
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