Danielle was a guest with Jim Goddard on Talkdigital Radio talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.
Case in point: to justify high fees as yields have fallen, mutual funds, like pensions have dramatically increased their risk exposure to try and ‘win’ lottery-like bets while they continue to tout ‘conservative’ strategies and fund names. This drift has made their holdings less liquid and, as inflated prices mean revert, highly capital destructive.
See the WSJ: Mutual Funds’ Embrace of High-Profile Unicorns Backfires. Looking to beat benchmarks, funds expanded their holdings of private tech startups only to mark down values after disappointing IPOs.
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