Monthly Index of Private Company Revenues Shows Decline
Summary
Comparatively, during this same period, the public capital market indicators (DJIA, Nasdaq Composite, and S&P Small Cap 600) were each up 2-4%.In fact, over a four-year comparison, where the PCI shows an increase of 290%, the public indicators only revisited their four-year old baseline starting level in Q4 2009—coming off a very serious dip in value.This is exactly why investable funds are currently being modeled after the PCI—to capture that consistent growth in revenues the small-to-mid sized private company sector has proven to exhibit.” PCI analysts note that its typical of the index to perform conversely to the public indicators and that over a four year period of review there is no discernable behavior relating the private company group to the performance of the public sectors.In fact, exactly half of the vast PCI portfolio cited a downward shift in gross revenues as compared to the prior month.Standing alone this data could appear foreboding for the sector, but when viewed in the historical perspective of the PCI’s annual trends it’s clear to see that a drop in Q1 is standard and consistent with the last three year’s data.Comparatively, during this same period, the public capital market indicators (DJIA, Nasdaq Composite, and S&P Small Cap 600) were each up 2-4%.This is exactly why investable funds are currently being modeled after the PCI—to capture that consistent growth in revenues the small-to-mid sized private company sector has proven to exhibit.”PCI analysts note that its typical of the index to perform conversely to the public indicators and that over a four year period of review there is no discernable behavior relating the private company group to the performance of the public sectors.