Red Rocks Capital Global Listed Private Equity (GLPE) Index Sees Dip in Third Quarter Index Performance
Declines in North American private equity and French equity markets impact Index
October 15, 2014
Golden, CO - (Business Wire) - Red Rocks Capital, an asset management firm specializing in listed private equity securities, announced today the performance of its Global Listed Private Equity (GLPE) Index for Q3 2014.
Past performance does not guarantee future results.
Bloomberg data from 09/30/2009 - 09/30/2014
“Underlying portfolio company performance appears to be steady with no notable write-downs across the listed private equity universe,” said Mike Trihy, who manages the GLPE Index at Red Rocks Capital.
“However, geopolitical risk appears to be affecting global markets, and higher risk market segments, like listed private equity, have sold off slightly more aggressively.”
Euro currency weakness and the strengthening US dollar continue to be a drag on performance as well, as approximately 60% of GLPE constituents trade on foreign exchanges. This trend could continue if rising rates and an improving US economy continue to drive US currency values higher.
Notable deals throughout the quarter included: KKR acquisition of the DJ audio unit from Pioneer for $550 million; Apax sale of health care software firm TriZetto for $2.7 billion and an approximate 3X return; and Onex sale of its remaining stake in Spirit Aerosystems for proceeds of $3.2 billion and an approximate 8x return.
ABOUT THE RED ROCKS CAPITAL GLOBAL LISTED PRIVATE EQUITY INDEX (GLPE)
The GLPE Index is the largest, most widely followed private equity index, with more than $700 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. These companies invest in, lend capital to, or provide services to privately-held businesses. 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 $1.5 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.
Index returns shown are not reflective of actual investor performance nor do they reflect fees and expenses applicable to investing. An investor may not invest directly in an index.
S&P 500 Total Returns Index
An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.
Credit Suisse Managed Futures Liquid Index
An index that systematically tracks 18 of the most liquid and widely traded instruments in seeking to reflect the returns the Managed Futures sector.
FTSE EPRA/NAREIT Global Real Estate Index
An index that is designed to track the performance of listed real estate companies and REITS globally in both developed and emerging markets.
MSCI World Index
An index designed to capture large and mid-cap representation across 23 Developed Markets countries. With 1,612 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
Dow Jones-UBS Commodity Index
A broadly diversified index composed of futures contracts on physical commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME).
HFRX Global Hedge Fund Index
An index designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry. The methodology is based on defined and predetermined rules and objective criteria to select and rebalance components to maximize representation of the Hedge Fund Universe.
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.
For private equity companies mentioned in this document, as of September 30, 2014, Red Rocks Capital holds positions with the following firms:
- KKR (KKR)
- Onex Corp (OCX.CN)
Through Altamir Amboise (LTA.FP)
Red Rocks Capital
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- Denver, CO 80203