Secondary Market Rises For First Time In Four Months

Oct 22 2010 | 1:34pm ET

The hedge fund secondary market bounced back in September amidst continued heavy trading.

The Hedgebay Global Hedge Fund Secondary Market Index rose almost half a percentage point to 78.93% last month. Much of the increase was the result of a raft of near-par trading, with some stakes changing hands for the full net asset value of the investments.

"September is traditionally one of the quieter months on the secondary market, but increasingly we are seeing that tradition no longer applies in the aftermath of the credit crisis," Hedgebay's Elias Tueta said.

"With the end of the third quarter nearing, the scramble for liquidity meant that sellers were willing to settle for slightly reduced prices for assets in any class," he added. "The number of high quality hedge fund shares still on the market means that there will always be willing buyers for these reduced assets, and this sparked much of the near par trading we saw in September."

Private equity and credit strategies found the most takers last month, the first in four to see the index rise. Even Hedgebay's Illiquid Asset Index inched up to 47.58% of par, from 44% in August.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note