Not sure how it is in the US but in the UK anyone can buy listed PE Investment trusts.
And quite often you can look at the discount and do arbitrage on that I certainly did very well with Electra Private Equity (ELTA)
And quite often you can look at the discount and do arbitrage on that I certainly did very well with Electra Private Equity (ELTA)
I assume you can't hand Electra one of their shares and get back its constituents. And I assume because it's private equity, you can't do the obverse either, or do a long/short type trade.
You presumably could short a quoted trust or us CFDs or buy warrants but that's a bit rich for me.
The public listing is of the company, whose business happens to be investing, so though I've never looked I don't see why CFDs & derivatives wouldn't be available.
Venture Capital Trusts (VCTs) are similar (perhaps a subset?) but focus on earlier stage companies (clearly) in exchange for a tax advantage for the initial investors - but not for those who subsequently purchase shares in the VCT itself from them.