PCIX delivers features that capture Private Equity insight into Public Markets.
1. Our underlying hypothesis is that private equity investments (in aggregate) carry predictive signal about publicly traded securities
2. The key source of such predictive signal is the fact that, during their diligence process, private equity fund managers are privy to confidential company information that may not yet be reflected in the public markets at the time of their investment
3. Some of this information is specific (i.e., idiosyncratic to an individual company), while other information is systematic (i.e., relating to the general market environment and the company’s sector)
4. We posit that we can discover investors’ collective near-term insight (regarding systematic factors) via detailed analysis of the timing and nature of the deals they execute