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I would be very surprised if there were any pension funds out there with such heavy VC allocations to the point where a downturn would encourage a federal bailo
by whatok 11y ago
I would be very surprised if there were any pension funds out there with such heavy VC allocations to the point where a downturn would encourage a federal bailout. Do you know of any?
- kolbe 11y agoIt's just one more straw. I don't think there's a single class of investment in any pension fund that would alone make a bailout necessary. But I wouldn't be at all surprised to hear that a tech sector bust would cost several funds upwards of 10%. Add a few more failures of that kind to the mix, and we'd be talking bailout.
- whatok 11y agoHow are you coming up with 10%? Do you know what the typical allocation to VC for a pension fund is?
- kolbe 11y agoVC and PE? 5%. But add to that exposure to the publicly listed tech sector, for aggressive funds, that could be as high as 20%. Then there are secondary effects like a downturn in Bay area real estate.
- whatok 11y agoPE is going to have completely different dynamics as far as industry allocations. I would love to see an example of a pension fund with a 20% allocation to tech. And if you're talking about a federal bailout, this is likely going to be a public pension fund which makes it even more unlikely.