RED ROCKS CAPITAL GLOBAL LISTED PRIVATE EQUITY (GLPE) INDEX LAGS KEY INDICES FOR 2014
GLPE INDEX CONTINUES TO OUTPERFORM KEY GLOBAL EQUITY INDEX FOR THREE YEAR AND FIVE YEAR PERIODS - STRONG DOLLAR NEGATIVELY IMPACTS EUROPEAN CONSTITUENTS IN 2014
January 15, 2015
Golden, CO - (PR Newswire) - Red Rocks Capital, an asset management firm specializing in listed private equity securities, announced today that its Global Listed Private Equity (GLPE) finished 2014 down slightly from year end 2013. Although the GLPE Index was up 2.06% during Q4, the index finished the year down 2.19%, while the MSCI World index increased 5.95%.
As the GLPE Index is US dollar denominated, currency movements played a major role in index performance in 2014 as the weakening Euro and British Pound provided a significant headwind. Overall, currency effects provided a -5.58% contribution to index returns for the year. Concerns about the European economy weighed on the index as well, leading many European names to trade at increased discounts to net asset value (NAV).“We’ve seen a disconnect between public market prices and underlying private portfolio values for many listed private equity companies in 2014,” said Mike Trihy, GLPE Index Manager at Red Rocks Capital. “Valuations of private holdings in Europe have generally grown steadily throughout the year, while market prices have remained stagnant or in some cases dropped. We believe investor concern about the macro backdrop in the region has led to this gap and not concerns regarding private portfolio company performance. With secondary market discounts for unlisted private equity funds in the low single digits, we could see uplift in listed private equity names from their current deep discounts to balance sheet valuations.”
|Annualized Returns as of 12/31/2014||1 Year||3 Year||5 Year|
|Global Listed Private Equity Index||-2.19%||20.80%||13.21%|
|MSCI World Index||5.95%||16.24%||10.94%|
|Credit Suisse Managed Futures Liquid Index||15.77%||4.62%||2.73%|
|FTSE EPRA/NAREIT Global Real Estate Index||14.70%||15.03%||10.92%|
|Bloomberg Commodity Index Total Return||-17.87%||-9.41%||-5.53%|
|HFRX Global Hedge Fund Index||-0.58%||3.17%||1.04%|
|S&P 500 Total Return Index||13.69%||20.37%||15.45%|
Past performance is no guarantee of future results.
One cannot invest directly in an index.
ABOUT THE RED ROCKS CAPITAL GLOBAL LISTED PRIVATE (GLPE) EQUITY INDEX
The GLPE Index is the largest, most widely followed private equity index, with approximately $500 million in ETF tracking assets, and was the first U.S.-based investable index to monitor global listed private equity companies. With its global scope, GLPE puts an emphasis on direct private equity investing. The GLPE Index is designed to track the performance of private equity firms which are publicly traded on any nationally recognized exchange worldwide. Index constituents are selected from a universe of over 250 firms with aggregate market capitalization of over $300 billion that invest in, lend capital to, or provide services to privately-held businesses and provide a meaningful subset of the $3.5 trillion AUM global private equity market. The Index is comprised of 40 to 75 public companies representing a means of diversified exposure to private equity firms. The securities of the Index are selected and rebalanced quarterly per modified market capitalization weights.
ABOUT RED ROCKS CAPITAL, LLC
Red Rocks Capital is an asset management firm specializing in listed private equity securities. The Red Rocks Listed Private Equity portfolio gives investors access to an asset class that has historically had high barriers to entry due to investor qualification, long lock-up periods, and high initial investment minimums. Established in 2003 by Founders and Co-Portfolio Managers, Adam Goldman and Mark Sunderhuse, Golden, CO-based Red Rocks Capital was one of the first companies to offer access to private equity through a liquid mutual fund structure. It is currently the largest asset management firm that is focused exclusively on listed private equity, with approximately $1.3 billion in assets for advisor-sold mutual funds and variable annuities for institutions and investors. For more information, visit the firm’s website, www.redrockscapital.com, or call 303.679.8252.
This information has been prepared by Red Rocks Capital from data believed to be reliable, but no representation is made as to accuracy or completeness. GLPE returns are based on a simulated index from October 1, 1995 to September 27, 2007 and an actual index from September 28, 2007 to Present. Red Rocks Capital calculated the hypothetical results by taking a snapshot of the index as of September 28, 2007 and back-testing performance to October 1, 1995. The hypothetical performance results are back-tested and are shown for illustrative purposes only and do not represent decisions made by the adviser during the period described. Such results were compiled after September 27, 2007 and do not reflect the impact that material economic and market factors might have had on the adviser’s decision-making if the adviser was actually maintaining the index during that time. Hypothetical back-tested performance has inherent limitations. It does not reflect actual market activity and it is not indicative of future results. The performance of the index for the period from September 28, 2007 to present was actual. The results portrayed reflect the reinvestment of dividends and other earnings. The index included securities that track the performance of private equity firms that are publicly traded. Past performance is no guarantee of future results. Index returns shown are not reflective of actual investor performance or do they reflect fees and expenses applicable to investing.
One cannot invest directly in an index.
None of the information contained here constitutes a solicitation, offer, opinion, or recommendation by Red Rocks Capital LLC to buy or sell any security, or to provide legal, tax, accounting, or investment advice or services regarding the profitability or suitability of any security or investment.
Red Rocks Capital
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