Each quarter we explore a topic that we believe is relevant for our clients in understanding the current investment environment and the markets.
We view 2011 as a year of continued positive growth economically but also as a year of increasing geopolitical volatility. These conditions support our view that an intelligently diversified portfolio with the flexibility to capitalize on meaningful opportunities is the appropriate approach for our clients.
In 2006 Aureus wrote to clients explaining why private equity and venture capital were asset classes to be avoided. While many factors contributed to our view, fundamentally we felt excessive asset flows combined with a weak exit environment combined to create a poor return dynamic. Today, we believe venture capital in particular is an attractive asset class for clients with the appropriate profile.