Locking up capital has pros and cons
In theory, closed-end funds should outperform over long horizons – they can avoid forced sales. But in practice, lack of monitoring and alignment can lead to agency costs and underperformance.
Investors are watching conflict in the Middle East closely as inflationary pressures begin to build beneath the surface. One of the challenges for many investors is reduced exposure to the hedging benefits of fossil fuels in listed, and private markets.
In theory, closed-end funds should outperform over long horizons – they can avoid forced sales. But in practice, lack of monitoring and alignment can lead to agency costs and underperformance.
Risk