Hedge Funds

Hedge funds wrong to fear secondaries

by Josh Friedlander

Brian Shapiro talks to AR about his recent survey of investors and what a more robust market for trading hedge fund stakes could mean for the evolution of the industry.

 Brian Shapiro (Photo: Simplify)
Trading in the secondary stakes of hedge funds, funds of funds and other alternative investment partnerships has grown to $65 billion in annual notional volume, but the process remains slow, costly and inefficient, according to a recent survey conducted by Simplify LLC, a provider of software to institutional investors.

That survey, announced by AR in May, garnered a significant sample size—489 responses from investors representing $416.7 billion in investible capital—55% of which have traded at least one hedge fund stake. If the process were simpler and cheaper,