Consider the universities that entered
into illiquid investment programs with the promise of earning higher returns.
Not exact matches
Turning
illiquid private - company stock
into cash by selling shares to the public required engaging a top
investment bank, which typically wouldn't take a company public until it had had five profitable quarters of increasing revenue.
In the quest to compensate for low fixed income returns, pension funds have plowed money
into stocks, private equity funds and
illiquid and very risky
investments, like subprime auto loan securities and commercial real estate.
Mutual funds would not be able to invest this much
into a relatively
illiquid investment without surpassing the 15 % threshold.
The rules have come in the wake of changes in the mutual fund industry, as funds have now moved beyond the mere pooling of stocks and bonds
into riskier and more complex categories such as alternative and
illiquid investments and leveraged funds.
Also property
investment are deemed to be completely
illiquid but these were all designed to come
into fruition over the coming years and i think previous management were underplaying their chances to sell them.In short, expected upside surprises here and indeed I see the liquidity profile ticked up in the December report to 33p back by autumn.
After taking over the reins in 1987, David Swensen, the chief
investment officer of Yale Endowment, moved aggressively
into non-traditional and often
illiquid asset classes like foreign equity, absolute return, real assets and private equity.
@keshlam - if you are buying
into such an
illiquid stock in the first place I don't think you would have any
investment strategy, you would be purley gambling.
A private equity (PE) fund is a collective
investment model where money from separate investors is pooled together
into a single fund and then used to make
investments, most often in various
illiquid equity and debt assets.
In the context of bonds or other
investments,
illiquid refers to a bond or other
investment that can not be converted
into cash quickly or near prevailing market prices.
And yet, private company
investments can also be notably high - risk endeavors, the company is generally not as regulated; it may be controlled by majority owners who are unscrupulous and if investors are not careful, they may find themselves locked
into ownership in the business with no exit — no way to monetize their
illiquid interest in the company.
They like the hybrid quality that combines private and public
investments — or
illiquid and liquid sleeves —
into one
investment, says Pagano.