Why GSV Capital Is Worth Much More
The public markets continue to doubt the strategy of investing in high-growth private firms, yet GSV Capital (NASDAQ: GSVC ) continues to execute on its strategy and drive value higher. The recent market volatility highlights the value of investing in a diversified group of firms with a long-term horizon.
For the first quarter, GSV saw the net asset value, or NAV, remain flat sequentially at $14.91 even with a volatile market for high-growth investments whether public or private. The NAV of GSV was able to withstand the large losses in Twitter (NYSE: TWTR ) by offsetting it with gains in other portfolio stocks such as Palantir Technologies and Dropbox. Investors weren't as forgiving with the stock plunging to now sit substantially below that NAV at $10. Oddly, the theme is consistent with other venture capital funds including Firsthand Technology Fund (NASDAQ: SVVC ) that trades significantly below NAV as well.
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Disclosure: Long GSVC. Please read the disclaimer page for more details.