Fishing Where the Fish Are
Warren Buffett’s punchy partner in crime, Charlie Munger, often explained to investors that they should "fish where the fish are." The saying is a useful description of how we approach private markets. Clients often ask us, around the launch of Virtera Private Select II, how, where, and why we invest the way we do. Our answer is this: we spend the overwhelming majority of our time in buyout, and within buyout, at the lower end of the middle market. That is where we believe the pond is still stocked.
What Happens When Markets Stop Caring About Price?
For decades, the Efficient Market Hypothesis gave investors a clean story: markets are efficient, prices reflect fundamentals and capital flows to the best opportunities. That story has always had skeptics but a growing body of research is making it harder to defend.
