Top share investors are unlikely to be rushing to buy a slice of the social not-working site Facebook.
The one percent apparently either have invested in Facebook through private transactions while others shy away from risky technology deals.
According to Business Week, Jason Thomas, chief investment officer of Aspiriant, said that people who will be investing in the IPO will be those who come in late. Most of his customers remember the tech bubble and are not going to go there again.
Facebook, the world's biggest social-networking service by far, filed yesterday to raise as much as $5 billion in the largest internet IPO. The figure is likely to go much higher as more people get hyped up.
But it seems that the one percent are not particularly interested in the 99 percent's financial dealings and would not touch Facebook with their bulky portfolios.
The way they see it, investors who are able to buy in at the offering price once it's determined could be looking at below-average returns if they seek to buy and hold.
John Jennings, senior vice president of St. Louis Trust, oversees about $3 billion for clients with an average of $75 million under management said his clients were not interested.
He said that while owning Facebook shares was a little more exciting than having another muni bond in your portfolio, the way his company invests means that it is not not going to load up on Facebook and try to make a quick buck.
The odds are against you if you go public and do extremely well. Most start trading at a high price point and then underperform or fail, according to Scott Schermerhorn, chief investment officer at Granite Investment Advisors.
Groupon is being seen as a cautionary tale for investors. Shares in the company gained about 31 percent in their first day of trading after the firm's November IPO, and have since fallen about 22 percent.