Secondary Market Continues Advance As Investors Shy Away From Illiquid Funds

Nov 16 2010 | 12:50pm ET

The hedge fund secondary market continued its turnaround in October, a month that saw the highest average trade price in six months.

Buyers paid 81% of net asset value for hedge fund stakes last month, according to the Hedgebay Global Hedge Fund Secondary Market Index, the second time in as many months that the average price has gone up. In September, investors paid just under 79%, on average.

"It is extremely difficult for investors to be secure about committing to trades when price valuation is so volatile, as it has been over the last six months," Hedgebay co-founder Elias Tueta said. "The steady rises over the last couple of months may bring a bit of added confidence to investors for the rest of the year."

But confidence in one area was considerably shaken last month: the illiquid hedge fund space. The Hedgebay Illiquid Asset Index plummeted to 34.5% in October from 47.6% in September.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

When Less is More: The Case for Concentrated Equity Strategies

Jun 1 2015 | 7:59am ET

The conventional wisdom is that wide diversification is the “holy grail,” as...

 

Sponsored Content

Editor's Note