This study highlights the link between stock return volatility, operating performance, and stock returns. Prior studies suggest that there is a ‘low volatility' anomaly, where firms with a low stock return volatility out-perform firms with a high stock return volatility. This paper confirms...

This paper examines diversification as a source of value creation and destruction in private equity (PE) funds. Previous literature has focused on the ‘diversification discount' in corporations. However, in PE funds, diversification might increase returns by ameliorating managerial risk...