Insights from SWS Partners

Our institutional management approach and portfolio due diligence extract actionable insights—and that benefits our clients. For example, in our latest DGO quarterly update, we explored how those calling for a long-overdue market correction are incorrectly pointing the finger at public equities and overlooking one unraveling along the perimeter. Perhaps large private companies who have recently gone public, or those eyeing public share issuance, may be the more likely victims on the chopping block.

Mike Parker outside of the WeWork coworking space in Detroit, Michigan.

Good healthcare is often the result of patients having access to a group of diverse specialists. Imagine a scenario where you had a complex health issue and your only option was to see an orthopedic surgeon. This would be far from ideal, however, this type of scenario regularly occurs in the financial planning industry, as all members of the team typically have the same role.

In Parts 1 and 2 of our Venture Capital Investing for Private Investors series, we discussed how technology has enabled more investors to harness the growth potential of private companies and the macro backdrop related to investing in these types of companies. Here, we will share why size matters for private deals.

The consensus heading into 2019 was that the Federal Reserve’s Open Market Committee would raise the federal funds rate three times this year. Instead, the benchmark lending rate was cut last month for the first time since 2008. Concerns over a global slowdown, trade wars, and yield curve inversion have given the Fed air cover to be “proactive.”

Reading between the lines, however, we find it hard to determine if the rate hike is consistent with the Fed’s mandate of price stability and maximum employment.