The Empirical Study On Performance Evaluation Of The Private Fund In China

In June 2013,the newly revised Law on Funds for Investment in Securities officially brought the private fund industry into law operation mechanism.Subsequently,the domestic private fund industry entered a rapid growth phase.Developing with the Chinese stock market,the private fund industry has made indispensable contribution for progress of Chinese capital market.As more and more private funds exhibit,how to evaluate the funds' performance becomes an indispensible and urgent problem.To date,the research on the evaluation of the funds' performance is relatively lacking not enough overall.In order to protect the legitimate rights and interests of investors,provide the theoretical basis for the management department.It is particularly important to establish an evaluation criteria system on private equity funds which is objective and can be recognized by the majority of stakeholders.Based on the analysis of relevant literature on domestic and foreign fund performance evaluation,the final research object of this paper is private equity investment fund.This paper selected 95 private equity funds which established between 2013 and 2014.In the empirical process,these 95 funds were divided into 7groups according to the investment strategy.The survey period is from January 1,2015 to December 31,2018.The research is carried out from following three aspects: the level of fund risk,the level of risk-adjusted fund returns and the ability of fund managers.It then makes attach analysis of the fund performance from 9 detailed indicators.After calculating the result of a single index,the entropy method is used to calculate the weight of the index,so as to calculate the comprehensive result.In the analysis of the results,the comparison between strategy categories and the same strategy fund are used to replace the horizontal comparison between different strategy funds.This can exclude the impact of fund returns caused by different strategic investment targets and different investment propensities.The empirical test of this article mainly draws the following conclusions.Firstly,the overall returns of most fund products fluctuate greatly,which indicates that the current private equity fund products are still greatly affected by changes in the market environment.Secondly,regardless of the market situation,some private equity investment funds always show significant excess return capacity.This shows that in the current private equity industry,some outstanding managers are able to resistmarket uncertainty risks and outperform market benchmarks by rationally allocating assets and adjusting positions in a timely manner.Thirdly,most fund managers have failed to demonstrate their ability in time selection and the stock selection,which indicates that the fund has to bear systemic risks to obtain excess returns.