private unicorns as an amc by stableton, available via swissquote
in case anyone’s interested in such a product (no affiliation / sq sends me their magazine and the current one has an ad in it).
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The fact that Swissquote aggressively pushes these bullshit investment products makes me very suspicous of them as a legitimate broker. Couple that with their fee disadvantage (compared to IB) and recent price hikes and I’m probably out the door in a couple weeks.
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I’ve heard of that recently, it is not bad per-se except the usual high fees. But valuation of private companies is inherently difficult, not precise or too generous because of potential conflict of interest ( closeness between VC and owners,…).
If you check the specs here at the bottom, index composition, you can see they are valuating companies mostly on private financing rounds, many done in 20-21 were capital was flowing cheerfully.
EG: Stripe was valued at 95B in 2021 and now is at 50B.
On the other side you just need 1 winner out of 20, from IPO or acquisition, to have some profit.
In conclusion may be worthwhile to allocate a smart bit, but personally I think that it will be difficult that profit less fees will exceed public markets.
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And if it is a small part of your portfolio (let’s say <5%), is it even worth the hassle/pain for the extra gain ?Especially since you cannot write off losses.
A multimillion fortune with its own wealth trust has a different way for bookkeeping than us normal people.
looking at the “Unicorns” - by how much can they increase their valuation (if you’re apparently already double digit bn company)? nice story, bad execution and heavy fees. also I agree with the comment that valuation for private companies is difficult and I am sure in many cases here, public valuations would be far, far lower. do not touch that one in my opinion