SUMMARY: – The economic downturn will create new opportunities for value creation by privately held companies, both by existing companies as well as by newly founded companies. – Seed-stage opportunities will require even less capital to get started but significant support to grow long-term, both in follow-on capital as well as hands-on mentorship and guidance. – Due to the longer-term horizon for exit, the timing for investing at the beginning of a new economic cycle positions these companies to further…

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“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffett The Goal of Every Investor Almost anyone who invests knows this famous quote from the most renowned long term investor of our time. The notoriety of the quote stems from its focus on the emotions of fear and greed. Surprisingly less is made of the first sentence, “I will tell you how to become…

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Seeking Return Over Size Executive Summary Emerging manager investors – early stage “angel” investors – can now access a growing menu of cost-effective options to secure an even larger emerging manager allocation customized to their risk appetite. New and expanding execution vehicles and platforms are easing the challenge of investing substantial amounts into smaller emerging funds. Over various time periods, academics have documented emerging manager outperformance of 1.7-2.2% per year. This outperformance is especially notable as it is even greater…

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There has been a lot of buzz in recent years in the alternative space about ‘emerging’ hedge fund managers. Programs are being launched throughout the institutional investor community to dedicate funds to this “asset class.” Credit Suisse points out that “research of returns from January 1996 through December 2010 indicates that smaller hedge funds (less than $100M in AUM) have historically outperformed larger hedge funds (greater than $500M AUM) by 3.95% annually.”  Pertrac notes that “the average small fund has…

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