Valuations Differences in Private Equity Funds, Mutual Funds, and Hedge Funds

In today’s global marketplace, doing business abroad has become as common as getting dressed each day. Technology has bridged the gap for entrepreneurs and corporate visionaries to expand into global markets with ease. Extensive risk analysis and market research must be communicated effectively to enable strategic financial steps that maximize shareholder equity and minimize company risk and exposure to be exercised. This paper will identify and discuss various factors that will impact global finance over the next 10 years

On a weighted basis, private equity firms were invested in sectors that appreciated 4.5% in 3Q compared to 4.3% by S&P 500. Private equity firms are broadly overweight energy, consumer, and healthcare sectors, while underweight financials and communications sectors compared to the S&P 500. Strong energy returns this quarter have led to

The goal of this case is to help Sandra Meyer develop a presentation to address Henry Bosse’s concerns about international investments. The general idea is to demonstrate to Henry the benefits of international diversification, if any. To achieve this goal, you need to have a view on 1) the impact of foreign exchange (FX) rates on the return and risk of international investments, and 2) the impact of having more assets on the return and risk of the investment portfolio To form views on these two points, answer the following questions: I. The impact of FX rates on the risk and return of foreign investments 1a) Using data in Appendix A, calculate the

Grove Street Advisors (“GSA”) is a leading fund-of-funds, focused on investing in “low risk” top-tier private equity funds that are not excessively large nor highly levered. GSA is faced with a number of strategic alternatives to help catalyze the firm’s next stage of growth. We propose that GSA expand globally and continue to build expertise in relatively underserved global PE markets such as China and India to help meet its objectives of satisfying customer needs, enhancing its international reputation, staying responsive to trends in private equity, and ultimately maximizing profitability.

Advisors and investors would do well to pay as much attention to the expected volatility of any portfolio or investment as they do to anticipated returns. Moreover, all things being equal, a new investment should only be added to a portfolio when it either reduces the expected risk for a targeted level of returns, or when it boosts expected portfolio returns without adding additional risk, as measured by the expected standard deviation of those returns. Lesson 2: Don’t assume bonds or international stocks offer adequate portfolio diversification. As the world’s financial markets become more closely correlated, bonds and foreign stocks may not provide adequate portfolio diversification. Instead, advisors may want to recommend that suitable investors add modest exposure to nontraditional investments such as hedge funds, private equity and real assets. Such exposure may bolster portfolio returns, while reducing overall risk, depending on how it is structured. Lesson 3: Be disciplined in adhering to asset allocation targets. The long-term benefits of portfolio diversification will only be realized if investors are disciplined in adhering to asset allocation guidelines. For this reason, it is recommended that advisors regularly revisit portfolio allocations and rebalance

magnitude of these risks, this paper advocates for a more proactive solution. Active investing in

There are a lot of companies worth investing in around the country and the world. An investor cannot simply put his money into a company without doing some research beforehand. Using ratios, balance sheets, income sheets, and other financial information, a potential investor has a lot of resources to use to ensure a good investment is made.

Once the goal of corporations became maximizing the value of the firm, they attracted wealthy “corporate raiders”, who used this new corporate philosophy to launch many takeover attempts on companies, with the intent on restructuring these companies, as to increase their stock prices, so that they can “refloat” them for a considerable profit. Most of these takeovers were financed with borrowed money, hence the term lever­aged buyouts, or LBOs. As the article states, “In a typical LBO, the acquirer would buy out the public stockholders and run the com­pany as a private concern, slashing costs and slimming it down. The ultimate aim was to refloat the company on the stock market at a higher valuation”. Initially this was seen as one of the best remedies for the agency issues that surfaced between shareholders and mangers. However as the economic climate changed, many realized that the LBO was not the answer. “When the economy went into a reces­sion during the early nineteen nineties, many of the firms that had gone private, such as Macy’s and Revco, couldn’t keep up their interest

Consumers in today’s society are careful about how and when to invest his or her money in today’s ever changing economy. Organizations around the world are penalized for failing to follow the new laws or sanctioned by the security exchange commission. The precautions are put in place to help protect the organizations shareholders and investors.

Many changes have transcribed in the global market since the years of 2008-2009, the years of what could be dubbed as the “Second Great Depression”. The changes made have been of significant impact as the market has had to accommodate or regulate a great quantity of systems that range from the advancement of technological platforms in the compartment of information technology to the increase in demand of less common forms of energy being established by major corporations such as Tesla’s Powerwall home batteries. The increase of applications via phones have even made it easy for investors, even novice investors, to buy shares in stock markets at an international scale with a push of a button, taking great advantage of what the globe offers in

Corporations generally invest in debt or stock securities for one of these three reasons: Corporations may have excess cash, to generate earnings from investment income, and for strategic reasons. A large technology, drug or medical device company may invest in a promising startup that is developing new products which may be complementary to the buyer's product line. If the new technology holds promise, the buyer may buy the startup outright and make it a secondary

Unfortunately, this year also marks the third straight year we report on a hedge fund industry mired in underperformance. However, the woes facing the hedge fund industry are compounded this year, reaching beyond performance, creeping into fund raising and industry expansion. This year is witness to net negative asset flows and actual reductions in the number of hedge fund firms, as firm closures

Ethical investments are similar to traditional investments with only one difference. Both traditional and ethical investors pursue the same goal of capital gains, higher income and/or preservation of capital for future needs. "The major difference between traditional investors and ethical investors is that ethical investors do not want their investments going for things that cause harm to the social or physical environments. Instead they want their investments to support needed and life supportive goods and services"(Kingswood Consultants ). In this paper I will explain what ethical investments are, why ethical investments are so significant, what was the past stand on ethical investments, the current stand on ethical investments and

In his book, Capital Ideas: The Improbable Origins of Modern Wall Street, Peter L. Bernstein examines the innovative financial work of various academics that helped shape modern Wall Street. Bernstein sets out to show that Wall Street is in fact a fundamental and useful model to follow, rather than something to be feared. He points out that, “By combining the linkage between risk and reward with the combative nature of the free market, these academics brought new insights into what Wall Street is all about and devised new methods for investors to manage their capital.” (2) These impressive scholars have incorporated scientific measurement to the art of finance, forever

They claim that international capital mobility, or, the ability of investors to freely allocate capital around the globe, engenders promise, while simultaneously entailing peril. This paper will attempt to address the arguments of both sides to foster greater comprehension.