The Mystery and Myths of Mutual Fund Markdowns

“It’s like we went public without even knowing it.”

I heard this sentiment from leaders of major private tech companies this week, as mutual funds grabbed headlines for marking down Snapchat, Blue Bottle and other massive private tech companies. All of a sudden these founders, who have been hell-bent on staying out of the public market spotlight, got a taste of what it is like to see reports of your value shifting—without any sense why.