Secondary trading: Will it take off now?
Fri May 1, 2009
Big names are getting into the business, which has been bedeviled by poor transparency, slow execution, counterparty risk - and resistance from managers.
Big names are getting into the business, which has been
bedeviled by poor transparency, slow execution, counterparty
risk - and resistance from managers
By Britt Erica Tunick
Could the secondary market in hedge fund
investments finally take off? Although about ten years old,
this market has maintained a back-room, dodgy reputation, in no
large part because hedge fund managers have generally opposed
it - and investors have been afraid to cross them. But with the
power balance shifting, will managers quit resisting and let
the market flourish? The introduction of a handful of new
platforms for trading hedge fund investments seem to imply that
may be the case.
Such big names as Morgan Stanley and Credit Suisse are
getting into the action, hoping to capitalize on the desire of
desperate sellers to unload - even if at a discount - the
investments that they can't get out of since dozens of
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