Premier Miton's Jane on why private equity is an area of 'obvious malinvestment'

Similarities with 2000s tech bubble

Unprecedented amounts of money creation in the QE era of the past decade has fuelled a huge bubble in spaces such as private equity and crypto, according to David Jane, multi-asset manager at Premier Miton Investors.

"As in every cycle, there will be some spectacular blow ups and some of the candidates are becoming evident. Asset classes that collapse are generally the ones which are subject to the most leverage as this leads to forced selling once the direction turns down," he said.  In an investment note published today (20 June), Jane argued that an obvious candidate is the private equity arena, which he sees as an area of "obvious malinvestment" beginning to unravel due to huge valuations on businesses with little revenue, let alone profit. "This is a feature of most recent market cycles but h...