@article {Gresch43, author = {Nathalie Gresch and Rico von Wyss}, title = {Private Equity Funds of Funds vs. Funds: A Performance Comparison }, volume = {14}, number = {2}, pages = {43--58}, year = {2011}, doi = {10.3905/jpe.2011.14.2.043}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Based on a comprehensive sample of 1,641 funds, this article investigates the performance of private equity funds of funds versus direct fund investments. On a risk-adjusted basis, funds of funds outperform the aggregated direct funds. When separated into categories such as buyout, venture, and fund of funds, buyout funds exhibit the most attractive risk{\textendash}return profile. Analyzing how fund performance depends on macroeconomic variables, direct funds generate pro-cyclical returns: Returns increase with high public market performance and economic growth as well as declining corporate bond yields. For funds of funds, we cannot observe such a pattern.TOPICS: Private equity, statistical methods, analysis of individual factors/risk premia, performance measurement}, issn = {1096-5572}, URL = {https://jpe.pm-research.com/content/14/2/43}, eprint = {https://jpe.pm-research.com/content/14/2/43.full.pdf}, journal = {The Journal of Private Equity (Retired)} }