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There are benefits to having a fund manage your investment, and private equity is quite a capable manager.
Many of the new investors, including SoftBank's $93 billion Vision Fund, manage funds so large they dwarf the entire traditional venture capital market in the United States.
"The evidence points to the fact that over time, managers do not provide extra profits," says Espen Sirnes of the University of Tromso.How then did the fund manage to beat its benchmarks before the crisis?
Think of it as a charitable mutual fund: you put in money when you want, take a tax deduction as if you were donating to a public charity and have the firm running the fund manage the money.
That is, if a mutual fund manage ment company wants to re ward a broker‐dealer for sell ing its fund shares to the public, the management com pany will utilize that broker dealer in its portfolio trans actions.
Moody's Investors Service, the investment counseling and information subsidiary of Dun & Bradstreet, Inc., has en countered a significant road block to its plan to sell its right to manage the $30‐million Moody's Capital Fund to Vance, Sanders & Co., Inc., a big Bos ton‐based mutual fund manage ment and distribution concern.
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The two are the Undiscovered Managers Behavioral Growth fund, managed by Frederick W. Stanske, 43, and the Undiscovered Managers Behavioral Value fund, managed by Brendan S. MacMillan, 33.
The fund manages the finances of Kuwaiti businessmen and officials.
Two decades later, Mr. Serra's fund manages about $7 billion worth of holdings.
Of the roughly $26 billion the fund manages, less than $1 billion belongs to outside investors.
The fund managed an advance of nearly 17 percent in the first three quarters of the year.
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