Tue, Dec 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedgebay: Secondary market sees widespread balance sheet clean up as investors prepare for 2011

Monday, January 31, 2011
Opalesque Industry Update - Legacy assets remain on market despite sell-off

The secondary market witnessed one of, if the not the broadest selling effort by investors in the secondary space in the decade since the market was established. A high volume of trading across the spectrum of strategies in December suggests a methodical clearing of assets by investors preparing for 2011.

The average price of trades for December registered at 72.81% for the month, a slight drop from November. Hedgebay attributes the fall to a change in investors’ priorities this month. While the pricing of trades is normally the top priority for investors, the disposal of assets was the main concern as the year-end neared. Investors are eager to cleanse their portfolios to start 2011 fresh.

Elias Tueta, co-founder of Hedgebay, commented:

“The selling we saw in December was not only widespread, it was calculated and methodical. In the years since the credit crunch we have seen individual investors or groups of investors make a determined effort to clean their portfolios, but never before have we seen it across the whole secondary market. 2011 looks set to be another strong year of recovery for the hedge fund market and this was a concerted effort by investors to start the year with a clean slate.”

Despite the seeming pervasiveness of the liquidation, legacy assets still remain on the market, particularly at the illiquid end of the spectrum. While assets that were gated, side-pocketed or suspended due to the credit crunch are still residing on investor balance sheets for the moment, Hedgebay believes that a long term shift in these assets could help stimulate market growth.

Tueta continues:

“Looking forward to 2011, it looks to be a year of growth in the secondary market. The presence of transparency could make all the difference in rectifying this volatile situation. The overhang of legacy assets could be alleviated as a result and therefore create the confidence investors need in order to reinvest their capital, generating more demand and growth for the industry generally.”

Hedgebay’s Illiquid Asset Index, which measures trading in gated or suspended funds, rose 15.94% in December, the second month in a row the index has climbed.

(press release)


About Hedgebay Trading Corporation
As the first and largest secondary hedge fund market provider, Hedgebay - founded in 1999 - can rely on historical illiquidity data dating back several years. The IAI and SMI primarily target investors in hedge funds, such as fund of hedge funds, pension funds, endowments, foundations, insurance companies, family offices, wealth managers and HNWIs. www.hedgebay.com.


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  4. North America - Why Steve Cohen, Connecticut hedge fund billionaire, gives so much in New York[more]

    From Insidephilantrophy.com: Billionaire Steve Cohen was born in Great Neck, New York before attending Wharton, working on Wall Street and then founding SAC Capital Advisors in Connecticut. Though his company (Point72) and foundation are based in Connecticut, Cohen and Alexandra are deeply connected

  5. Investing - Soros buys a highly speculative biotech in the third quarter[more]

    From Fool.com: …The Soros Fund bought 25,000 shares of the struggling small-cap biopharma Aegerion Pharmaceuticals in the third quarter. For those of you who haven't heard of this name, suffice to say that this was a surprising buy in light of the company's recent problems and poor outlook going for