An Empirical Analysis Of The Performance Of China's Private Equity Fund Investment Strategy

With the continuous expansion of the size of private equity funds and the continuous diversification of investment strategies,private equity funds have become an important part of China's financial market,and have received increasing attention from investors and scholars.The performance of private equity funds has become the core of research.The performance of private equity funds is of great significance when making investment decisions for investors as an important indicator to measure the merits of a fund.At the same time,when investing in funds,investment styles or investment strategies of the investment also be taken into account.Different investment strategies have different characteristics,but also have different performance.Therefore,the research of sub-strategies on the performance of private equity funds can provide some usefull informations for investors when they making investment decisions,so that investors can choose their own investment targets and investment strategies according to their own preferences and the performance of different investment strategies.The main contents and methods of the study:This paper uses the investment strategy of private equity funds as the research object to compare and analyze the performance of different investment strategies.The research on the performance of different investment strategies mainly starts from the following two aspects:First,the performance of the investment strategy.The methods used to measure performance include: geometric yield,Sharp ratio,Treynor ratio,Jensen index,and information ratio.Through the measurement of the performance indicators of the sample funds using different investment strategies to compare the differences in the income of different investment strategies;at the same time,the performance of different investment strategies is compared with the performance of the stock market to distinguish the difference between the fund market and the stock market.Second,the risks of the investment strategy.The indicators used in the risk measurement include: standard deviation,systematic risk ?,maximum drawdown,and coefficient of variance.Through the measurement of the risk of the sample fund under different investment strategies,and the investment strategy the risk measurement results are compared to analyze the differences in different investment strategies.In addition,the risks of investment strategies are compared with those of the stock market to distinguish the difference between the fund market and the stock market risk.Through empirical research on the sample fund's performance and risks,the performance of private equity fund investment strategies can be measured more comprehensively.Analysis conclusion:1.From the results of the performance evaluation of investment strategies,the calculation results of the performance indicators of the composite strategy and event-driven strategy performed better than other investment strategies,and the performance of the relative value strategy and the market neutral strategy are worse.2.From the risk measurement results of investment strategy,the risks of relative value strategy and market neutral strategy are relatively small,while the risks of compound strategy are larger than other investment strategies.3.Comparing with the performance of the stock market,it is concluded that the performance of the compound strategy is better than that of the stock market in terms of performance,and the performance of the short position strategy is less than that of the stock market.In terms of risk measurement,the risk of each investment strategy is slightly greater than that of the stock market.