Does the presence of a HF secondary market embolden funds of funds?
May 24th, 2009 | Filed under: Today's Post
When we first examined the secondary market for hedge fund stakes, there was only one company in the business, Hedgebay (see related post). Several others jumped into the business early this year and were welcomed with sudden industry growth as hedge fund investors began to scramble for liquidity.
While all hedge fund investors could have used a little more liquidity over the past 12 months, funds of funds were apparently doing most of the scrambling – trying to respond to redemption requests on one side and redemption gates on the other.
Earlier this month the Wall Street Journal reported that the customer base served by HF secondary markets has changed as a result. Reported the Journal:
“‘Last year, it was very much a local story dominated by individual investors in Swiss private banks spooked by actual and alleged links to Madoff funds on top of dismal performance,’ said Elias Tueta, co-founder of Hedgebay, which provides a platform to match up buyers and sellers of hedge fund stakes. More…
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