Historical Fund Performance: How Leverage, Size and Vintage Impact Returns
The massive real estate correction that began in 2008 is causing investors to rethink how they design, implement and monitor their investment programs. In the new investment climate, new questions have risen: Did the use of leverage improve risk-adjusted performance or was it simply a tool to amplify returns? Did the early success of some funds breed ever-larger funds that were doomed to fail? What is the relationship between investment vintage period and the economic cycle?