The return and diversification advantages associated with the alternative asset classes are often quoted to justify ever increasing allocations which represent upwards of 50% of portfolios for many of sophisticated investors (e.g. sovereign wealth funds and family offices). Hence, there is often a great deal of hype associated with alternative investing - which makes the two papers below somewhat unique.

Ludovic Phalippou, the author of the first paper, has been a critic of private equity investing for almost 20 years. In this p...