Hundreds of private equity ** net value cut in half, the worst performance of the product lost more than 90%, whether to set up a "double line" caused heated discussions.
As of the end of November, there were many products in the private equity market, and some products even lost more than 90%. This has brought the risk issue of private equity ** into the spotlight. In this context, whether private equity should set up a "double line" has become a hot topic in the industry. The so-called "double line" refers to the early warning line and the stop loss line. The early warning line is a reminder mechanism, when the ** net value falls to the early warning line, the manager needs to take corresponding measures;The stop-loss line automatically closes the position when the equity falls below a certain limit to control losses. Industry insiders believe that whether to set up a "double line" needs to be decided in combination with the risk appetite of investors and the investment style of managers. For some prudent investors, setting up a "double line" can better control risks;For some aggressive investors, it is better to pursue high returns by not setting up a "double line".
The issue of private equity market risk has attracted much attention, and in the future, private equity needs to make more efforts in risk management and investment research capabilities to protect the interests of investors.