Can Hedge Funds Make VC-type Investments?
Hi guys,
This is probably a stupid question but I have a quick question about hedge fund capabilities. I was reading about Facebook randomly and learned that Peter Thiel made an investment in Facebook when it was still in it's early stages. To me, this sounded more like a venture capital type of transaction than a hedge fund, so I was wondering if hedge funds also engage in giving capital to startups regularly or if there are slight nuances that make this a hedge fund action as opposed to a venture capital transaction. For example, did the timing (in terms of facebook's maturity at the time the capital was given) or the size of the stake change it's status as a venture capital investment or was it literally a hedge fund making a VC investment?
Thanks and sorry for using a bunch of repetitive language throughout this post as I'm typing this with my phone lol.
http://www.bloomberg.com/news/2012-01-10/chase-coleman-channels-ancesto…
they can and they do.
Your example is not the best though considering Thiel is better known as the Paypal/Facebook/Founders Fund/LinkedIn guy who lives in San Francisco than as a hedge fund guy.
^^ They still do.
Jay Coleman of Tiger has 4Bn in a portfolio of privates. They were up 55% in 2011.
De Shaw has a private portfolio as well doing private CBs, loans, warrants, blah blah. A number of event funds will do this as well.
Short of it is most of the large guys are multi-strat unless they're 100% long/short which is quite rare these days
At end of day, HF in the business of making CHEDDA, and that can be in private equity, public equity, whatever it is
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