Count on it, they can’t help themselves. If Mark McGuire is juiced to the tits and hitting grand slams, Barry Bonds will also get on the juice. Same goes with investment performance. They all get over their heads in leverage every time.
A pension that technically isn’t a pension or a 401k…I assume this person is talking about their IRA. Weird fucking way to put it.
$200k is way too little to make an issue of at the scale of a pension. That sounds like an individual portfolio or this person prorated the losses to themselves.
If it is a pension like vehicle with multiple people, explain that the portfolio value going down doesn’t mean much unless it’s a realized loss or the loss is never recovered. Equities fluctuate all over the place during normal trading days.
If it’s an individual portfolio, which is what I expect, ask if those are actual realized losses or not. The comment about the coworker also losing is throwing me off though. I don’t think this person has any idea what they’re talking about, frankly.
Sometimes you have to let tards tard.
Correct, however, she said 401ks specifically.
Retirement funds, endowment funds, pension funds…yes they all have PE exposure. I left finance nearly ten years ago, but as far as I know, the closest an individual investor could get to exposure to accredited investor-like investments privately is through 1974 Act funds made to echo the private funds trades. I only saw hedge funds creating parallel funds like this for retail investors given that the underlying investments are public. I don’t know of any way for an individual who isn’t an AI to get true private equity (non-public) deal exposure directly themselves. You clearly are up to speed on things, has this changed in the last few years?
Chanel, Chanel. Do your fucking research. I’m a former private equity associate.
PE firms do not invest in behalf of everyday Americans. You have to be a qualified investor to invest and most funds have a $1-5M minimum investment. Add to that the yearly fees and its way out of reach for average Americans. The investments aren’t in any 401ks until some sort of exit, by which time most of the money has already been made. Retail investors buy at the overpriced IPO and the company is already hyper leveraged to the tits.
I listened for two minutes and had to stop because of the basic lack of research done here.
The industry term is “distressed debt/special situations” funds. They come in after a firm has been wrecked with too much leverage and they pay pennies on the dollar for the fulcrum security, which is usually some kind of debt that converts to equity.
The firms that wreck the companies in the first place are plain vanilla leveraged buyout shops. This specific tactic done overtly was big in the 80s. Now they’re more covert about it but the end result is the same.