CHAPTER 15
Portfolio Valuation
Challenges and Opportunities Using Automation
President, Minnesota Business Valuation Group, LLC. Olsen Thielen & Co., Ltd. subsidiary
Business development companies, hedge funds, and other fund managers face new, intensive scrutiny over periodic valuations of portfolio securities. From a funds management/compliance standpoint, it is essential to have reliable sources for this security valuation, especially with privately owned holdings. For multiple reasons, business valuators who value these funds must simultaneously value numerous securities rapidly. To accomplish this laborious task may require the employment of new types of technological tools. Automating aspects of the process might offer a new solution.
Divided into two major groups of topics, this chapter explores the various aspects of partial automation. The first segment summarizes background rules and procedures currently developing for portfolio valuation. Included is a detailed history that reviews how valuation evolved from a narrow domestic focus to an international application. This segment concludes with the effect of these events on appraisers and their portfolio valuations. The chapter then reviews the application of the evolving portfolio valuation regulations. Finally, it concludes by proposing that current methods may also need to evolve to be timely, cost effective, and (most important) defensible.
BACKGROUND
Changes in the value of underlying securities ...
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