Private-equity firms are not bad investments as listed companies.

America’s only sizable mutual fund that invests solely in listed private-equity firms registered a 42 percent return last year, better than the S&P 500.

Over three years, ALPS Red Rocks Listed Private Equity Fund is up 15 percent per year.

Most of its investments are in foreign- listed private-equity firms like Aurelius, but it also owns shares in The Blackstone Group, KKR, Apollo and Carlyle.

The reason 2013 was fruitful was that many private-equity firms were able to sell companies they own for good prices in the rising stock markets.