QUESTION ABOUT THE BETA OF SEARCH FUNDS

I am new to the search fund space. My colleagues and I are very interested in learning more, and potentially investing in some funds. As we were discussing search funds, we were trying to determine the best way to think about the beta of them. Some of my colleagues tended to lean toward assigning a beta close to 1.0, figuring that they are in essence equity and are therefore likely closely correlated to the overall economy. I tend to agree with that, but think it might be closer to 0.8 or so, giving some credence to them having a lower correlation due to their idiosyncratic nature. I welcome thoughts on it though, and am happy to be convinced otherwise. Any advice is appreciated. Thank you.



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