Ellerston cautious on tech valuations and PE IPO's. Ashok Jacob, the head of Ellerston Capital, has warned that technology stocks and IPO's spun out of private equity are due for a day of reckoning. Jacob believes that whilst the broader market will be fine there are certain sectors looking like bubbles and a cautious approach is warranted. We call ourselves fully invested bears. There are signs of bubbles in certain sectors, and this is a time when you have to be very disciplined. Because of these bubbles it is very easy to have an accident. Jacob is also cautious on the raft of IPO's being spun out of Private Equity firms which he believes have been overvalued. (VIEW LINK)
I have 13 years experience in equity markets and financial media. In 2013 I Co Founded, Livewire Markets with Tom McKay. Our vision is to be the #1 source of investment ideas in Australia. Opinions expressed are my own.