Sat, May 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

What to do when you lose patience with your illiquid hedge fund investment

Tuesday, October 30, 2012

Benedicte Gravrand, Opalesque Geneva:

Multiplicity Partners sees a massive increase in long-term investors like pension funds, UHNWIs and family offices losing patience with their hedge fund providers over their progress in liquidating side pockets or other illiquid/impaired investments.

As a Zurich-based independent investment boutique that helps investors liquidating their illiquid hedge fund investments, Multiplicity should know what itís talking about. Since 2009, its team has managed the wind-down of various hedge fund portfolios with assets of more than $2 billion for clients.

Thomas Ritter, partner at the firm, said in a recent release: "Even four years after the peak of the financial crisis, investors are still sitting on an estimated $50 to $75 billion of illiquid and impaired hedge fund investments. In Switzerland, we now see that even the most patient investors, who are typically invested through funds of funds, become tired of excuses for not getting their money back. Unfortunately, the secondary market for hedge funds is highly fragmented and exhibits a high degree of information asymmetry between buyers and sellers. An immediate exit in the secondary market may therefore not be advisable if the investor does not need liquidity urgently. But "kicking-the-can-down-the-road" and letting fees erode the remaining value of the assets is not an option either."

Kinetic, a global pr......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New TMT hedge fund adopts the long-term approach[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Adam Parker founded Center Lake Capital LLC in New York in November 2014. Before that, he was portfolio manager at Point State Capital (the successor fund to Dr

  2. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Icelandís failed banks face a tax that targets the lendersí estates as the government prepares to unveil its plan for exiting capital controls in t

  3. Investing - Nelson Peltzís Trian Fund Management reduces position in Legg Mason, Biotech investors up big amid bubble talk, Hedge funds increase exposure in healthcare[more]

    Nelson Peltzís Trian Fund Management reduces position in Legg Mason From Octafinance.com: Trian Fund Management has filled a SC 13D/A form regarding Legg Mason, Inc. Per Nelson Peltzís Trian Fund Managementís filing, the filler reported decreased stake in the company by -11.05% to 11,03

  4. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AMís latest Weekly Briefing, in t

  5. Billionaire hedge fund investor Odey says April 'bloody', has cut risk[more]

    From Reuters/Yahoo.com: Billionaire hedge fund manager Crispin Odey has cut risk and leverage following a stunning 19.3 percent loss in his 3.1 billion euros (2 billion pounds) Odey European Inc fund in April, a letter to investors seen by Reuters showed. Describing the month as "bloody", Odey

 

banner