Investors have been cautious with US stocks in recent weeks amidst fears that Trump’s new trade policies could push the world’s largest economy into a recession.
Still, Mitchell Green – the founder of Lead Edge Capital says he’s “not afraid of a recession.”
In fact, in his recent interview with CNBC, the market veteran went on to call a recession one of the “best times to invest.”
That said, the macro uncertainty has pushed the benchmark S&P 500 index down nearly 15% over the past two months.
Green says ‘fortunes are made during recession’
Financial markets tend to take a breather during a recession, which could end up creating exciting opportunities for long-term investors in the back half of 2025, according to Mitchell Green.
“Fortunes are made during recession,” he argued in a recent interview, adding those interested in the secondary market should consider buying when others are forced to sell.
Following this strategy could help generate an “absolute ton of money,” the seasoned expert added.
Note that Lead Edge Capital currently has stakes in renowned names like Uber and Spotify. At writing, the growth equity firm has about $5.0 billion in assets under management.
What is a secondary market?
A secondary market refers to buying and selling of existing investments, rather than newly issued ones.
It allows investors, typically Limited Partners (LPs), to sell their stakes in private equity funds before the fund reaches the end of its lifecycle. This provides liquidity in an otherwise illiquid asset class.
According to Mitchell Green, a recession could push several LPs that are over-allocated to private equity into selling, which will be “amazing for businesses like ours and others that can take advantage of it.”
Note that Lead Edge Capital invests rather aggressively in Chinese equities as well. Its founder Mitchell Green is convinced that Beijing remains investable despite the escalating trade war with the Trump administration.
Lead Edge to keep stake in TikTok parent company
Green expects the Chinese economy to be “much bigger” in 20 years than it is today.
In his CNBC interview, the market expert also confirmed that Lead Edge plans on keeping its stake in ByteDance irrespective of whether the US moves to ban TikTok or not.
The growth equity company already factored in the possibility of a ban on TikTok US. So, such a development won’t change “one iota of our investment thesis,” he added.
Lead Edge is bullish on TikTok as it’s an incredible company, with an amazing management team, and massive tailwinds, which will help it “make a great return with just China and the rest of the world.”
Mitchell Green is positive on Beijing even though the iShares MSCI China Multisector Tech ETF (TCHI) has lost some 20% since mid-March.
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