Apollo CEO: Private Markets Offer More Alpha as Public Markets Grow Overvalued and Highly Correlated
• Apollo CEO Marc Rowan said active management has failed to beat market indexes over the past 20 years, making it harder for investors to outperform public markets
• Rowan believes public markets are highly correlated and indexed, so private credit represents a bigger opportunity for alpha and outperformance
• The S&P 500 is dominated by 10 mega cap stocks trading at high valuations, presenting challenges for investors looking to buy stocks
• Rowan advocates for private credit investing where investors can earn premium returns for taking on illiquidity
• Apollo manages over $630 billion in assets, with significant exposure to private credit, as Rowan sees larger opportunities in private markets vs highly efficient public markets