Sat, Apr 30, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n