Agarwal, Vikas; Barber, Brad M.; Cheng, Si; Hameed, … - 2023 - This draft: April 20, 2023
We show that mutual funds report their junior stakes in startups at 43% higher valuation than model fair values that … junior securities held by mutual funds, implying that mutual funds mark junior securities close to par with the senior … are consistent with mutual funds neglecting the probability of negative outcomes in which junior securities are paid less …