Fri, Mar 6, 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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Patrick McCormack to shut down hedge fund Tiger Consumer[more]

    Komfie Manalo, Opalesque Asia: Patrick McCormack is shutting down his hedge fund Tiger Consumer Management after 15 years "to spend more time with his family," reported Reuters. Tiger Consumer ended February up 4.6% (+3.9% YTD) and assets roughly $1.4bn, reported

  4. Event-driven strategies lead hedge fund gains in February while CTA rally shows signs of fatigue[more]

    Komfie Manalo, Opalesque Asia: Hedge funds ended February on a good note (+0.8%), confirming the positive momentum witnessed since the start of the year, reported Lyxor Asset Management in its Weekly Briefing. As of the end of February, the Lyxor He

  5. Large hedge funds grow assets almost three times faster than sub $5bn funds[more]

    Komfie Manalo, Opalesque Asia: As institutional investors’ needs continue to evolve, they are increasingly looking to work with larger hedge fund managers and intermediaries who can meet their appetite for comprehensive portfolio solutions, said Barry Bausano, co-head of Global Prime Finance at D