Thu, Jun 29, 2017
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 it’s 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. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  2. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is

  3. FinTech - AI hedge fund Numerai now live on Ethereum, Cryptocurrency hedge funds generate huge returns as bitcoin surges[more]

    AI hedge fund Numerai now live on Ethereum From Cryptoninjas.net: Back in February, Numerai announced numeraire (NMR), a cryptographic token to incentivize a new kind of hedge fund built by a network of data scientists. Earlier today, the Numeraire smart contract was officially deployed

  4. Investing - Advisors slash hedge fund positions, Theravance Biopharma is a top pick of investment guru Seth Klarman, As asset management industry grows a search for new revenue streams[more]

    Advisors slash hedge fund positions From Barrons.com: Financial advisors have cut wealthy clients' exposure to hedge funds by up to one third over the past 12 months, The Financial Times reports. Advisor firms in the FT's annual top-300 ranking have reduced their hedge fund allocation to

  5. Investing - U.S. hedge fund in anonymous bet against Tesco shares, Hedge funds made repeated attempts to invest in Veneto banks, Steve Cohen's Point72 takes stake in struggling electronics retailer Conn's, Hedge fund Excalibur bets Riksbank will tighten by end of year[more]

    U.S. hedge fund in anonymous bet against Tesco shares From FT.com: A $20bn New York hedge fund is using an offshore shell company to anonymously bet against the shares of the UK supermarket Tesco, raising fresh questions over the efficacy of European short selling disclosure rules.