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Meb Faber raises doubts about the persistence of excess returns among top private equity managers, a quality often cited as a primary reason to invest in the asset class.
Faber states that, over his 26-year career, he has not observed consistent outperformance in private equity, with only limited persistence found in venture capital.
Faber has previously argued that margin traders usually incur losses at the point of buying, referencing Edwin Lefevre's analysis in past commentary. He has also highlighted Howard Marks's view that investors should welcome holding uncomfortable and lonely positions, as detailed in a separate note. These insights reflect recurring themes in Faber's coverage of investment behavior.