The market for secondary hedge funds

Tue Jun 5, 2012

In 2008, investors with illiquid hedge fund investments looked to the secondary market to release their stakes. Now demand for 'used' hedge fund goods continues to grow by the billions

By Claire Makin

Neil Campbell
Ben Keefe
Mark van der Zwan
Florian de Sigy
By now, many players in the secondary market for trading hedge fund stakes expected volumes to have dried up. They were wrong. Instead, the market has developed new legs and looks set to run for at least another 12 months.

"I thought the business would have tapered off now, but volume has gone up each year since we started," says Neil Campbell, head of Tullett Prebon’s alternative investments desk, which launched the secondaries business for the interdealer broker in 2009. Tullett sees $3 billion to $6 billion changing hands in the secondary market in 2012 to 2013.

Hedgebay, which has run an online trading venue for hedge fund secondaries since 1999, saw volumes of just under $1 billion on its platform in 2011 and expects to transact more this year. Over the past 12 years,...

ISSN: 2151-1845 / CDC10004H

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