In public markets, after two successive reporting periods of negative returns, the FOCUS Communications Service Provider Index (CSPI) reversed course and delivered a solid three month gain of 7.1% in our fall reporting period. This was essentially in-line with the 7.2% gain in the S&P 500 and the 7.1% gain in the NASDAQ over the corresponding time frame. The CSPI still trails the broader indices by a wide margin for the full year period. Whereas the S&P 500 and the NASDAQ boasted 12 month gains of 15.7% and 23.9%, respectively, the CSPI was actually down 5.2%. Despite this decline, sector multiples are still slightly higher than they were a year ago. The sector revenue multiple rose from 2.5x to 2.6x, and the sector EBITDA multiple increased from 7.7x to 8.1x.

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