Tue, Apr 21, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund secondary market no longer just an escape route but also a liquidity tool

Thursday, August 01, 2013

amb
Richard Beard
Benedicte Gravrand, Opalesque Geneva:

Trading in hedge fund secondaries has become very popular since 2008, and now more and more investors use it to acquire liquidity.

Apparently, investors were still sitting on an estimated $50 to $75 billion of illiquid and impaired hedge fund investments late last year. This is improving a bit. According to Richard Beard of Stream Capital, an estimated $35 to $40 billion still remain today.

Some fund managers not into it "The ability to sell illiquid assets through the secondary market has encouraged a large number of managers to auction off these holdings and return capital to their investors," Beard tells Opalesque. "However a lot of managers have yet to address the situation."

This is echoed by a recent survey done by Hedgebay, a player in the secondary hedge fund market where Beard used to work, which says "hedge funds … need to be further educated regarding the benefits the market can provide funds seeking additional sources of liquidity."

By and large, institutional investors are happier to use the secondary market than a few years ago. "Deleveraging has played an important reason coupled with a shift to more generic investments and real assets; hence a real need to use the space for opportunity costs," Beard says.

Richard Beard is the ......................

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. Studies - Fund managers bullish on equities, alternative asset classes, Hedge funds starting to spurn emerging markets, Insurance companies take aggressive approach to hedge funds despite restricted exposure[more]

    Fund managers bullish on equities, alternative asset classes From Benefitnews.co: Asset allocation and risk continue to be the top issues for institutional investors in 2015 and, while nobody is sure what the economy will do in 2015, investment fund managers remain positive about investm

  2. Investing - New hedge fund strategy: Dispute the patent, short the stock, David Einhorn bets on AerCap as leasing company avoids turbulence, Top hedge funds reveal these best investing ideas, Hedge funds bet big on PetSmart price bump, Victory Park Capital increases investment in upstart to $500m[more]

    New hedge fund strategy: Dispute the patent, short the stock From WSJ.com: A well-known hedge-fund manager is taking a novel approach to making money: filing and publicizing patent challenges against pharmaceutical companies while also betting against their shares. Kyle Bass, head of Hay

  3. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  4. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  5. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

 

banner