“We are convinced that the long-term risk taking, essential to economic and social progress, is continuing to migrate to private markets and at an accelerating pace.”
No, this is not the opening salvo of a press release from the desk of a private equity house touting its book. It’s the honest assessment from one of the most level-headed and cute investors in the business: Scottish Mortgage Investment Trust (SMT).
As a stockpicker, its star has been burning a little less brightly in the past six months as it endures a rare period of underperformance versus benchmarks. But that’s largely because of the global rotation from growth into value, and the collapse in once-mighty Baidu, not because of the unquoted stocks.