Hosed Hedge Fund Investors Dump Holdings On Secondary Market


What do you do when your favourite hedge-fund manager refuses to give you back the 40 cents left of each of your dollars that he hasn’t yet lost?  List your share of the fund on Hedgebay, of course!

Hedgebay is the eBay for secondary limited partnership sales. In no time, eager buyers will bid to buy your stake at a fire sale price–which is a lot more than your hedge-fund manager will give you.

But do it soon.  Because the rush for the doors and clobbered fund assets already have the average shares trading at 14% off.

James Mackintosh, FT: Holdings in some of the biggest-name hedge funds are for sale at hefty discounts to their assets, after restrictions on withdrawals left many clients unable to raise the cash they want by redeeming.

Multi-million dollar stakes in Citadel’s flagship Kensington fund, Harbinger Capital’s flagship and the Children’s Investment Fund are being hawked by investors on a new online trading facility set up by Cogent Alternative Strategies, a US hedge fund sales group.

Meanwhile, Hedgebay Trading, until December the only platform for buying and selling second-hand holdings in hedge funds, says trades doubled to $1bn past year and are continuing to rise. Even some banks are getting in on the game, helping to link buyers and sellers of frozen funds, in deals that should help everyone involved