Friday, November 13, 2015

Fidelity Venture Write-Downs, Term Sheet: November 13, 2015 - btbirkett@gmail.com - Gmail

Term Sheet: November 13, 2015 - btbirkett@gmail.com - Gmail



It's also probably important to understand how Fidelity generally invests in privately-held companies. Rather than having each mutual fund do its own deals, the firm's global equity capital markets group — led by Andy Boyd — negotiates an investment with the company, and then asks individual Fidelity portfolio managers if they want an allocation.

Moreover, while Fidelity marks each of its securities to market every single day (including for unlisted companies), the firm does not leave those calculations to portfolio managers (who might have conflicts of interest). Instead, Fidelity utilizes a Fair Value Committee that determines the appropriate price for each security. That means that every Fidelity mutual fund that holds Uber's Series D stock — there are lots of them — is valuing those shares at the exact same price.

http://fortune.com/2015/11/12/fidelity-marks-down-tech-unicorns/

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