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The private paradox

Neil Wilson explores why companies are increasingly turning their backs on public listings, and what this means for equity investors
The private paradox

“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. 

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