Will Danoff, one of the U.S. mutual fund industry's best stock pickers over the past 25 years, is tapping the brakes on funding so-called unicorn companies, saying the prospects for fast growing private businesses before they go public may be fading.
Unicorns — start-ups valued at $1 billion or more — are making front-page news around the globe, and that makes Danoff nervous. He runs the $111 billion Contrafund for Boston-based Fidelity Investments and his pre-IPO investments can lend an imprimatur of legitimacy, given his track record of picking blue-chip winners.
"There are so many unicorns. It means you have to be more careful than we were three or four years ago," Danoff said in a telephone interview with Reuters. "Maybe we are at a point where it's going to lose a bit of luster."