Fri, Dec 9, 2016
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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest