Wed, Jul 8, 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 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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner