Mutual funds sold shares in Airbnb, DocuSign and Palantir over the past nine months, at prices below the companies’ most recent valuations, securities filings show. The sales may be a sign that the funds are cooling on some investments after rushing into the sector in previous years.
It also challenges the idea that mutual funds buying into private tech firms are doing so for the long term. It’s very rare for mutual funds to sell private tech stock before a company goes public or is acquired, when the investment generally becomes much more valuable. But some brokers say they’ve noticed a few more examples than usual of mutual funds trying to sell this year. In some of these cases, the funds had held the stock for only a year or two before selling.