Thu, Jul 28, 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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New