Calculating Outperformance in Dollars: Introducing the Excess Value Method
Avi Turetsky, Matthew Pyrz, Barry Griffiths, Joaquin Lujan and Isaac Beckel
The Journal of Portfolio Management May 2021, 47 (6) 194-215; DOI: https://doi.org/10.3905/jpm.2021.1.234
Avi Turetsky
is a partner at Landmark Partners in New York, NY, and a research fellow at Case Western Reserve University in Cleveland, OH
Matthew Pyrz
is a senior associate at Landmark Partners in Simsbury, CT
Barry Griffiths
is a partner at Landmark Partners in Dallas, TX
Joaquin Lujan
is the co-head of the alpha team and director of rates and credit at the Public Employees Retirement Association of New Mexico (NM PERA) in Santa Fe, NM
Isaac Beckel
is an investment associate at the Public Employees Retirement Association of New Mexico (NM PERA) in Santa Fe, NM
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In this issue
The Journal of Portfolio Management
Vol. 47, Issue 6
May 2021
Calculating Outperformance in Dollars: Introducing the Excess Value Method
Avi Turetsky, Matthew Pyrz, Barry Griffiths, Joaquin Lujan, Isaac Beckel
The Journal of Portfolio Management Apr 2021, 47 (6) 194-215; DOI: 10.3905/jpm.2021.1.234
Jump to section
- Article
- Abstract
- ON ALIGNING COMPENSATION WITH OBJECTIVES
- A HISTORICAL PERSPECTIVE ON PRIVATE MARKET PERFORMANCE MEASUREMENT
- REJECTING A STRONG INTUITION—KS-PME NUMERATOR MINUS KS-PME DENOMINATOR
- ANOTHER INTUITION—THE CARRIED INTEREST WITH A MARKET-BASED PREFERRED RETURN
- DEFINING A SOLUTION
- THE EXCESS VALUE METHOD
- ILLUSTRATED CALCULATION OF EXCESS VALUE IN MORE COMPLICATED CASES
- CONSIDERATIONS FOR IMPLEMENTING THE EVM
- CONCLUSIONS
- ACKNOWLEDGMENTS
- ENDNOTES
- REFERENCES
- Info & Metrics