Thu, May 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedgebay: Secondary market trading volume reaches YTD high in March

Monday, April 26, 2010
Opalesque Industry Update - The volume of trading on the secondary market reached a year to date high in March, according to Hedgebay. The index has also shown repeats of last month’s premium trade, the first in nearly two years, confirming investors’ eagerness to seek out quality hedge fund assets.

The March edition of the Hedgebay Secondary Market Index (“SMI”) showed the highest number of trades completed so far in 2010. Hedgebay believes that the increased transaction frequency is indicative of investors having greater confidence in both the managers and future results.

Elias Tueta, co-Founder of Hedgebay, said:

“To some degree, the premium trade last month was a watershed for the secondary market. The emergence of trades at premium over NAV indicates that investors have become more comfortable with specific managers and with the market as a whole. Trust has returned to the market as far as quality liquid hedge fund assets are concerned, and we have seen the previous caginess around asset valuation disappear to an extent.”

Mr Tueta also attributed the higher volume to the continuous focus on portfolio clean-up. For this category of less liquid assets, the average price of completed trades dropped to 85% from 91% in February. Hedgebay believes that the higher volume shows a renewed determination among investors to clean their portfolios, in order to make the most of the burgeoning recovery of the hedge fund industry - which is most clearly demonstrated by strong asset flows in the primary market and the premium trading on the secondary:

“The premium trades, and those at close to NAV, are being closed by what we’d describe as the cash-raising investors on the secondary market. Many investors though are still focussed on getting rid of unwanted assets and starting again with a blank slate. In some cases in March we saw whole products, or even businesses being wound up on the secondary market. The volume of trades completed indicates that investors are especially determined to go forward with clean balance sheets, in order to take full advantage of the hedge fund market recovery. The process of an industry-wide clean up still has some way to go, but if the prevailing investor attitude of March continues, we may soon be at a stage when we can talk about investors tweaking their portfolios, rather than cleaning them” Corporate website: www.hedgebay.com

- FG

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 - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  2. Institutions - Institutional investors turn to real estate, planes, Assets at Boston’s five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  3. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Iceland’s failed banks face a tax that targets the lenders’ estates as the government prepares to unveil its plan for exiting capital controls in t

  4. Opalesque Exclusive: BMO launches multi-strat '40 act fund[more]

    Bailey McCann, Opalesque New York: As we reach new market highs, investors are looking for a way to diversify and protect their portfolios from a potential market correction. Liquid alternatives are rapidly gaining ground as a critical tool for investors to use to mitigate downside risk. The BMO

  5. All hedge fund strategies rebounded last week as market conditions normalize[more]

    Komfie Manalo, Opalesque Asia: After a difficult start this month, all hedge fund strategies ended last week in positive territory, as the Lyxor Hedge Fund Index gained 0.9% (-0.2% MTD, 3.3% YTD). According to Lyxor AM’s latest Weekly Briefing, in t

 

banner