Lone Pine Sounds Alarm over Tech Valuations

In letters to investors, firm founder Stephen Mandel Jr. and colleagues say the equity market looks “extended” and that private companies are reaching frothy valuations.

Stephen Mandel Jr. and several colleagues at Greenwich, Connecticut–based Lone Pine Capital have taken a cynical shot at the rash of investors, including hedge fund firms, that have been putting money into private companies.

“With interest rates at multi-decade lows, equities markets having enjoyed a powerful rally from the 2009 bottom through year-end 2014, and private technology companies receiving eye-popping valuations, does this not signal an extended equities market with limited opportunity?” Mandel and three of his colleagues wrote in the firm’s fourth-quarter letters for each of...

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