Tuesday, 22 July 2014
Last updated 8 hours ago
Dec 20 2010 | 8:20am ET
Hedgebay, which provides access to the secondary market for hedge funds, has launched a pricing and valuation service to assist hedge fund investors in determining the present value of the assets in their portfolios. The consultancy service gives investors holding illiquid assets a confidential means of price discovery across their portfolio.
The Hedgebay Pricing & Valuation Consultancy Service provides clients with valuations for their portfolios and advises on how best to manage the component assets. The service specializes in pricing hard-to-value assets such as those that are locked up or side-pocketed, have long redemption periods or suspended rights or those in funds that are undergoing restructuring.
Hedgebay already has a number a clients using the proprietary service, including banks, funds of funds, auditors and liquidators.
“This service is not only of great benefit to the individual using it, but to the secondary market as a whole,” said Elias Tueta, co-founder of Hedgebay. “A wide-scale valuation and pricing system will bring greater transparency and efficiency to an area where there is currently only a limited amount.”
“The lack of a mechanism for valuation means that buyers and sellers on the secondary market have been basing pricing on one-off variable factors like liquidity demands and portfolio structure – which are determined by the needs of the individuals trading, rather than any basic statistics of valuation. This is causing volatile prices and uncertainty among investors.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…