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An institutional investor has 45% of their assets in private investments private equity and private debt. These investments do not trade daily and do not
An institutional investor has 45% of their assets in private investments private equity and private debt. These investments do not trade daily and do not have daily pricing. (Buying and selling these investments is somewhat difficult.) This allocation has allowed them to achieve top performance over the past decade.
How is this a challenge to managing their rebalance policy if there is a substantial recession? How could this help or hurt them?
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