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Author(s)

Yael V. Hochberg

Joshua Rauh

Institutional investors of all types exhibit substantial home-state bias when investing in private equity (PE) funds. This effect is particularly pronounced for public pension funds, where the local overweighting amounts to 9.7% of the private equity portfolio on average, based on 5-year rolling average benchmarks. Public pension funds
Date Published: 10/31/2011
Citations: Hochberg, Yael V., Joshua Rauh. 2011. Local Overweighting and Underperformance: Evidence from Limited Partner Private Equity Investments.