Fido Manager Bites Private Equity

Jul 3 2007 | 12:54pm ET

A Fidelity Investments fund manager launched a broadside against private equity today, saying “the factors are there to indicate the end of a cycle.”

Anthony Bolton, who has managed Fido U.K.’s £3.1 billion (US$6.2 billion) Special Situations Fund for more than 25 years, said that the current private equity boom is a sign of impending doom during a discussion with Guardian Media Group Chairman Paul Myners at Fund Forum 2007 in Monaco.

“There are various stages in the private equity cycle; it has a cycle, perhaps more so than hedge funds,” he said. “I have been told by practitioners that there are good years to invest and there are bad years to invest, but the size of the deals in the industry currently has been unprecedented.”

He also decried the concentration of talent at private equity firms. “Investors in public companies are being severely disadvantaged if they don’t have the best managers running the company,” he complained. “We should have higher incentives for executives of listed companies, provided it is results-oriented—and I have gone out on a limb for this.”


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note