Most people don’t think about it, but there is a liquidity premium on publicly traded securities just as there is a risk premium, yet most only think about it in the case of extremely illiquid assets such as private equity.

However the liquidity premium is separate and distinct and there is a way to manage it to your advantage. This is what Roger Ibbottson, the former chairman of Ibbotson and Associates, is into these days as Chief Investment Officer of Zebra Capital Management. Zebra manages portfolios and hedge funds with an eye to capturing this liquidity premium.

Register or login for access to this item and much more

All Bank Investment Consultant content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access