Crossover Hedge Fund Mixes Venture Equity Investments With Mutual Funds

from the interesting-approache dept

An interesting look at a biotech venture firm that is trying to set up crossover hedge fund. That is, the fund won’t only invest in private equities from startup firms, but also in mutual funds of public companies. The idea is that it’s more diversified and can take a longer term approach – and can also perhaps take more risks on the private side while the public side keeps it afloat. I think it’s not a bad idea in these times, when it’s tough to take companies public. However, it does take a lot of different skills to manage, so execution will be key. It also makes it less likely for them to hit the big homeruns – since they’ll actually have less money to invest in early stage companies where the valuations are lowest.

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