The growing trend among US mutual funds of investing in private companies has raised concerns , leading the SEC to question mutual funds over how they value companies such as Uber and Airbnb . An analysis of fund performance and other data from Reuters found that some mutual fund managers now hold more than 50 % of AUM in unlisted shares , which in some cases has allowed 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 Larry Swedroe , direct of research at Aberdeen Asset Management .
The growing trend among US mutual funds of investing in private companies has raised concerns, leading the SEC to question mutual funds over how they value companies such as Uber and Airbnb. An analysis of fund filings and other data from Reuters found that some mutual fund managers now hold more than 5% of AUM 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 Larry Swedroe, direct of research at Buckingham Asset Management.