FYI: There have been numerous articles about how mutual funds such as T. Rowe Price, Fidelity and BlackRock are struggling to value their investments in pre-IPO darlings such as Uber, AirBnb and Dropbox. Since there’s no daily market price, each manager values these holdings differently. Now, the SEC is getting involved. It seems strange to think that mutual funds, created to hold publicly traded stocks, are investing in illiquid pre-IPO securities. It just seems wrong…and risky.
However, it makes absolute sense when you consider what’s happened to equity capital market regulation over the last 20 years.
Regards,
Ted
http://www.forbes.com/sites/thomaslandstreet/2015/12/08/desperate-for-returns-mutual-funds-add-risk-by-investing-in-private-startups/print/
