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We continue to view the business as defensive, although valuation at these levels feels full, especially given the market de-rating.
It is hard to see why private-equity firms feel they need to be defensive about falling valuations.
In these six investments there is cyclical upside, but the shares should be pretty defensive too, as valuations in most cases are supported by yields or cash.
Within days, even hours, of Nasdaq's tumble, venture firms went on the defensive, slashing company valuations, freezing contracts with young private companies and backing out of deals altogether.
"We do not think Arriva's earnings profile is as defensive as its current valuation premium implies and see risk to estimates," Thomas wrote.
"Defensive back?
Defensive spectrum.
Defensive merger?
Defensive Duds.
"Defensive Patent License".
Even if this is not delivered, we would argue Reed's shares can still deliver decent performance without a catalyst, given valuation relative to other defensives.
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