Why are private equity firms so small?

Due to the late start of private equity funds, most private equity funds are not large. "Small scale" does not mean that the product is not good. Many small private placements are not strong in strategic ability and scale because of their late establishment, but they have done very well in investment and research capacity building, internal management control, excess income acquisition and so on, which is very suitable for investment. Select private placement-view ranking-chat with private placement directly with one click.

Small private equity funds are flexible in operation. Small-scale private placement has a small amount of funds, whether it is buying or selling, it has limited impact on the stock price, and it is very easy to perform its own operations. When the market plummets, small private placements can quickly adjust their positions and respond to the plunge with short positions or light positions to reduce the risk of net value fluctuations. When the market style switches, small private investors can buy investment targets in a short time, complete the opening of positions and seize market investment opportunities as soon as possible.

Small private equity funds have a greater chance of getting high returns. The low amount of funds enables small private placements to use more unique strategies and invest in a wider range of targets, thus making it easier to obtain excess returns. For example, one of the strategies used by some small-scale quantitative funds-intraday stock rotation strategy, uses quantitative means to predict the short-term trend of stocks and carries out arbitrage strategy of buying low, selling high and buying low in the day, which can further improve product returns on the basis of quantitative strategy.

Want to know more about private equity companies, it is recommended to download the private placement network APP. Founded in 2004, the company is a leader and pioneer in vertical segmentation of domestic private equity fund industry. Its subsidiaries hold a fund sales license and a fund manager license. It is a fund sales organization approved by China Securities Regulatory Commission. It is based on providing a one-stop financial service platform for qualified investors and private fund managers, and its reputation is trustworthy.