Secondary market trading is booming despite resistance from many funds
Trading of hedge funds in the secondary market is flourishing and is showing every sign of increasing as managers handcuff investors with increasingly long lock-ups. On one day in September, blocks of shares in 150 funds were on the auction block at www.Hedgebay.com. The greatest demand was for especially well-regarded long/short and global macro names.
On the other side of the equation, investors were seeking to sell $43 million of shares from a single convertible arbitrage fund, more than those of any other money manager on