Public and private equity: The case for consistent manager evaluation periods

Institutional investors pride themselves on taking a long-term approach, yet when it comes to public and private equity, they often apply very different standards. While private equity managers are afforded a decade or more to deliver returns, public equity managers can find themselves under pressure after just three years of underperformance.

Aziz Hamzaogullari, CFA, Founder, Chief Investment Officer and Portfolio Manager of the Loomis Sayles Growth Equity Strategies Team, argues this double standard is increasingly difficult to justify. He points to evidence that private equity has underperformed public market benchmarks since 2010, despite its historical reputation for superior returns. He also questions whether the perceived lower volatility of private markets is an illusion created by infrequent valuations, while rising leverage and increased competition for deals are putting further pressure on returns.

In a conversation with Top1000funds.com, Aziz examines why investors apply different time horizons to public and private equity, the risks of constantly hiring and firing managers based on short-term performance, and why greater selectivity is essential across both asset classes. He also explores the AI investment boom, arguing that while the technology will be transformational, only a handful of companies are likely to emerge as sustainable long-term winners.

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IMPORTANT DISCLOSURE

For Institutional Use Only.

This reprint dated as of October 21, 2026 is provided with permission from Top 1000 Funds. Loomis Sayles and Top 1000 Funds are not affiliated.

This reprint is provided for informational purposes only and should not be construed as investment advice. Investment decisions should consider the individual circumstances of the particular investor. Any opinions or forecasts contained herein, reflect the subjective judgments and assumptions of the authors only, and do not necessarily reflect the views of Loomis, Sayles & Company, L.P. Investment recommendations may be inconsistent with these opinions. There is no assurance that developments will transpire, as forecasted and actual results will be different. Information, including that obtained from outside sources, is believed to be correct, but we cannot guarantee its accuracy. This information is subject to change at any time without notice.

Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision.

Market conditions are extremely fluid and change frequently.

Any investment that has the possibility for profits also has the possibility of losses, including loss of principal.

There is no guarantee that any investment objective will be realized, or that the strategy will be able to generate positive or excess return.

Past performance is no guarantee of future results.

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