We discussed private equity replication with public equities here and here. Erik Stafford just won the “honorable mention” award from AQR for his work on the subject. Click the image below to hear Erik’s 3 minute video explaining his key findings: Bottomline: buy cheap small caps based on enterprise multiples
Replicating Private Equity Returns with Small Value Stocks…3min video
About the Author: Wesley Gray, PhD
After serving as a Captain in the United States Marine Corps, Dr. Gray earned an MBA and a PhD in finance from the University of Chicago where he studied under Nobel Prize Winner Eugene Fama. Next, Wes took an academic job in his wife’s hometown of Philadelphia and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management firm dedicated to an impact mission of empowering investors through education. He is a contributor to multiple industry publications and regularly speaks to professional investor groups across the country. Wes has published multiple academic papers and four books, including Embedded (Naval Institute Press, 2009), Quantitative Value (Wiley, 2012), DIY Financial Advisor (Wiley, 2015), and Quantitative Momentum (Wiley, 2016). Dr. Gray currently resides in the suburbs of Philadelphia with his wife and three children. He recently finished the Leadville 100 ultramarathon race and promises to make better life decisions in the future.