An exceptional single *company* can have a higher rate of return, though: Amazon has been growing at an average rate of 36% a year since it IPO'd. If you had to pick between being Jeff Bezos and being a typical VC, on purely money grounds, you'd want to be Bezos.
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Interesting. Do you have a sense of how useful it is as part of a portfolio – how uncorrelated it is to other asset classes?
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No clue, except that VC dips lower in recessions and soars higher in booms than the stock market, so "pretty correlated with stocks". (Don't have numbers offhand, sorry.)
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I think you have inadvertantly discovered factor investing. I am willing to bet that
@benjaminwfelix or someone equally as talented could probably prove that the risk adjusted performance of VCs can be explained by their investing in small cap companies. -
factor investing = following this? https://en.wikipedia.org/wiki/Fama%E2%80%93French_three-factor_model …
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