Thursday, March 29, 2012

Funds that Own Facebook Stock

It is now much harder for the wealthy to buy shares of Facebook in private transactions. SharesPost, one of the leading marketplaces for non-publicly traded companies, just announced that the company "will cease facilitating transactions in Facebook stock as of Friday end of day to help ensure the company's orderly transition into the public markets." This was done at the request of Facebook.

Yet, investors both big and small still have an opportunity to acquire shares indirectly, by buying stock in funds that own shares of Facebook. The options are mutual funds, which are priced once a day based on the net asset value, or closed end funds, which trade on exchanges all day long just like a regular stock. has turned up two closed end funds that own shares of Facebook, on its free list of Facebook Stocks. One of the CEFs is GSV Capital (GSVC), which specializes in investing in venture capital backed private companies. The company name comes from Global Silicon Valley Capital. It owns a fairly diverse portfolio of innovative businesses, such as Bloom Energy, Dropbox, TrueCar, Twitter, and even SharesPost. It also owns a couple companies that have recently gone public, including Zynga (ZNGA) and Groupon (GRPN).

But most important, according to the company's fourth quarter Schedule of Investments as of December 31, 2011, there are 350,000 Class B common shares on the books at a cost of $10,465,981. The holdings represent 14.63% of the company's portfolio.

In the last three months, the GSV share price has risen from around 14 per share to 20 currently, an increase of 42%. Yes GSV has yet moved as much as another CEF that owns Facebook, the Firsthand Technology Value Fund (SVVC), which has increased in price from less than 15 per share to almost 37 today, a boost of 60%. It actually traded above 40 a couple days ago but had a pullback.

In terms of mutual funds that own Facebook stock, the T. Rowe Price Media & Telecommunications Fund (PRMTX) has approximately 1.2% of its portfolio in Facebook shares, a fairly small percentage compared to the closed end funds.

To see a list of over 25 of the companies that own Facebook stock, check out the free list at, which can be downloaded, sorted, and updated.

Disclosure: Author owns GSVC and SVVC. No recommendations of any of the above stocks is expressed or implied.



Ghassan said...

I bought SVVC @ 23 shall I keep till FB official IPO or sell @ current prices.

Stockerblog said...

I don't give investment advice, but I think it is always a good idea to take profits on a portion of positions. Therefore if the stock drops, you still have a profit on some of your shares and if it continues to go up, you still have some shares that are moving up.