U.S. mutual funds boost own performance with unicorn mark-ups

BOSTON/SAN FRANCISCO (Reuters) – Some U.S. mutual funds are boosting their performance with relatively big bets on private companies such as Uber and Pinterest, which they have been marking up at a rate far greater than the broad stock market. Relied upon by millions of Americans to save for their retirement, mutual funds emphasize that their investments in young tech companies ahead of their initial public offerings are relatively small. A Reuters analysis of fund filings and other data shows, though, that some have taken a more aggressive approach, boosting the share of these companies to more than 5 percent of assets and awarding them rich valuations that in some cases have helped them beat their benchmarks and peers by a wider margin.

Original story here.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply