When it comes to the best investment firms to invest in, the choice is clear: Invest in yourself
In a recent interview with Fortune, Scott Gurney, president of Invest In Yourself, the country’s largest private-equity firm, offered a clear-cut answer to why his firm was so popular.
“I think it’s because they understand what the market wants and what it wants from its own people,” he said.
“It’s what’s most valuable to them.”
For investors, the answer is clear.
They want a firm that understands how to manage their money, invest it wisely, and keep it there.
“They don’t go out and buy an equity business just because they think it will make them money,” Gurnee said.
Gurne is a former partner at the investment firm KKR and currently serves as president and chief executive officer.
As a partner, he made a name for himself in the investment world.
He rose from a high-level employee to a top executive and has since developed the firm’s investment strategy.
“If you want to be a top investment banker in the world, you have to have a great team,” Gowey said.
As part of his job description, Gurny oversees the firm and manages its investments.
He’s known for his passion for investing, his passion to learn more about the industry and his passion in his role.
The firm’s biggest assets are its own funds, which are backed by its own money and the vast majority of its assets are tied to the U.S. stock market.
“We’ve got a pretty deep pool of capital,” Gowley said of the firm.
He has made investments in more than a dozen companies, including General Electric and GE Capital, among others.
“The big investments are those that have a big market cap, have high-growth prospects, and have a lot of money invested in them,” he explained.
“And then you have the smaller ones that are just really interesting investments that aren’t big enough to be in the top of the pile but can provide a solid foundation for the growth of the company.”
“I’ve been a long-time investor.
I have a deep knowledge of investment strategy,” GOWEY said.
He said he understands why many investors might not trust a private-market firm that invests in stocks or commodities or bonds.
But for Gurnees, the real reason investors are attracted to investing in private companies is because the investment process is so efficient.
“There are a lot more risks involved, and the return is much more predictable than what a private company can provide,” he added.
“You have a good sense of the financial position, you’re well-positioned for success, and you’re looking for a good return.”
Private-market firms are not without their detractors.
Gowlys recent investments in companies such as Wal-Mart, Procter & Gamble, Pfizer, and Caterpillar are all seen as a negative by some investors.
But Gurnrey argues that there are some positive benefits to investing through a private firm, and that private-trading is a good way to diversify your portfolio.
“A private-based fund can provide the capital structure, the liquidity, and a level of diversification that is not readily available to the market,” he told Fortune.
“But, also, the returns can be a little higher than the market returns.”
And Gurnes investment strategy is to get his money into smaller, more diversified companies.
He recently put his money in the hedge fund S&P Global Market Value, which invests in low-cost stocks that offer the best return.
“This is not a fund that’s going to give you great returns.
This is a fund to get a diversified portfolio,” he emphasized.
“To get the highest returns, it’s a great idea to invest the same amount of money in smaller companies that are performing better than the ones that you’re buying into.”