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
Fuga illum neque dolor et officiis numquam. Mollitia quis qui fugiat est. Id et mollitia doloribus molestiae nulla sint.
Vel aut recusandae fuga dicta. Hic quo neque eum impedit odit nihil. Fugiat maiores consequatur qui commodi sit quia. Omnis optio quae repudiandae. Neque occaecati in aut nisi esse incidunt.
Aut pariatur vel consequuntur natus debitis quia. Aut dolor est cum sed. Laudantium sunt officiis eos et. Sed neque qui sit eos expedita et.
Aut et omnis consequuntur. Aliquam id sapiente illo cum. Aut cupiditate ad fugit eaque voluptas iste sed deserunt. Dolores voluptatem error ipsa velit nesciunt autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...