The head of a $2 billion firm advising pro athletes and the ultrarich isn't hunting for unicorns. Here's why he's looking at smaller companies in an age of glitzy IPOs.

"We're not chasing after unicorns because those valuations are so astronomical today," said Leo Kelly, CEO and chief investment officer of Verdence Capital Advisors. It's a $2 billion private wealth advisory firm whose clients include company founders and executives and athletes.

Kelly says he's built up a team of"valuation fanatics" and doesn't deviate from that approach no matter how tempting a new company might seem. He says applying that approach earlier in his career — at HighTower Advisors and Merrill Lynch — helped him steer clear of the tech bubble and minimized the damage he suffered in the Global Financial Crisis in 2007-08.He smashed 'Jeopardy!' records on the way to winning $2.5 million.

He argues that a lot of the biggest startups, especially in tech and social media, are attracting huge valuations because investors are focused on finding the next Amazon or Netflix — either because they missed out on those companies in the past, or think they can get a similar return again.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The 100-hour weeks, intense culture, and divisive hires that made Deliveroo a $2 billion business with backing from AmazonDeliveroo's rapid expansion has not been without growing pains, with insiders describing divisive hiring decisions and HR complaints.
Source: BusinessInsider - 🏆 729. / 51 Read more »