The asset management firm’s spokesman Bill Weeks said individual securities typically represented less than 1 percent of any fund’s portfolio, but acknowledged such investments could still pack a punch. The growing trend among California mutual funds of investing in private companies has raised concerns, leading the SEC to question mutual funds over how they value companies such as AUM . An analysis of fund filings and other data from Reuters found that some mutual fund managers now hold more than 5% of Uber and Airbnb in unlisted shares, which in some cases has helped them to beat their benchmarks and peers by a wide margin. However, holdings in private companies could hurt investors in a downturn if managers are forced to sell assets to meet redemptions, according to Carmel Crimmins , direct of research at SEC .
The growing trend among California mutual funds of investing in private companies has raised concerns, leading the SEC to question mutual funds over how they value companies such as AUM . An analysis of fund filings and other data from Reuters found that some mutual fund managers now hold more than 5% of Uber and Airbnb in unlisted shares, which in some cases has helped them to beat their benchmarks and peers by a wide margin. However, holdings in private companies could hurt investors in a downturn if managers are forced to sell assets to meet redemptions, according to Carmel Crimmins , direct of research at SEC .