There are two primary goals of the hedge fund: return enhancement and risk reduction. One of the key primary strategies in achieving these risk-return framework is through opportunistic investing, which is to 1) add value to existing portfolio via specialization and 2) fill gaps in the investment space of an existing portfolio. The former may be achieved by long-short equity or market-neutral strategies in a specific sector. The latter may be exemplified by the article below, that is combining private equity with publicly traded securities.
Read more, Thiel’s Clarium Hedge Fund Invests in Tech
Peter Thiel, whose Clarium Capital Management LLC lost 90 percent of assets from its peak until the end of last year, plans to invest the global macro hedge fund in what made him a billionaire: private technology ventures.
Clarium may invest a “significantly higher percentage” of assets in private equity in the near term, the San Francisco- based firm said in a July regulatory filing. The investments will include tech companies, James O’Neill, a managing director, said in an interview.
"Attractive" Opportunity
Now the firm views private equity as an “attractive investment opportunity,” according to the filing.
"Filling in Gaps"
“Venture funds and private-equity funds are filling in gaps where companies used to raise money from the public markets,” said Harry Weller, a general partner in the Chevy Chase, Maryland, office of New Enterprise Associates, the first venture firm to back Groupon Inc., the Chicago-based provider of online coupons. “The small tech IPO no longer exists.”
Private equity has also attracted Steve Case, co-founder of AOL Inc. (AOL), and Ted Leonsis, the owner of the National Hockey League’s Washington Capitals, who teamed up in June to open Revolution Growth Management Company II LP, a Washington firm raising $400 million to invest in 10 to 12 “technology-enabled businesses,” according to SEC filings last month.
Private-equity investments tend to produce lower returns than seed and early-stage venture deals, while the risks are also reduced because companies are less likely to fail, according to Emily Mendell, a spokeswoman for the venture-capital association.
Note: Italics copied in verbatim
Read more, Thiel’s Clarium Hedge Fund Invests in Tech
Peter Thiel, whose Clarium Capital Management LLC lost 90 percent of assets from its peak until the end of last year, plans to invest the global macro hedge fund in what made him a billionaire: private technology ventures.
Clarium may invest a “significantly higher percentage” of assets in private equity in the near term, the San Francisco- based firm said in a July regulatory filing. The investments will include tech companies, James O’Neill, a managing director, said in an interview.
"Attractive" Opportunity
Now the firm views private equity as an “attractive investment opportunity,” according to the filing.
"Filling in Gaps"
“Venture funds and private-equity funds are filling in gaps where companies used to raise money from the public markets,” said Harry Weller, a general partner in the Chevy Chase, Maryland, office of New Enterprise Associates, the first venture firm to back Groupon Inc., the Chicago-based provider of online coupons. “The small tech IPO no longer exists.”
Private equity has also attracted Steve Case, co-founder of AOL Inc. (AOL), and Ted Leonsis, the owner of the National Hockey League’s Washington Capitals, who teamed up in June to open Revolution Growth Management Company II LP, a Washington firm raising $400 million to invest in 10 to 12 “technology-enabled businesses,” according to SEC filings last month.
Private-equity investments tend to produce lower returns than seed and early-stage venture deals, while the risks are also reduced because companies are less likely to fail, according to Emily Mendell, a spokeswoman for the venture-capital association.
Note: Italics copied in verbatim
