Hedge Fund Prices Fall

Hedge Fund Prices Fall

September Hedge Fund Prices Fall for Fourth Month

Hedgebay Trading Corporation, which provides a platform for trading stakes in hedge funds, has announced that September transactions represented the fourth monthly fall in prices for funds.  Transactions last month were at an average discount to net asset value of 17%, compared to 12% in the previous month.  Despite a recovery of prices from a record 20% discount, investors are being careful not to pay too much for hedge funds.
“The fact that prices declined sharply in September against the backdrop of stable equity markets and the generally strong year-to-date performance of hedge funds is telling,” Hedgebay said in a statement today. “Investors didn’t want to “take the hit.”

Nassau, Bahamas-based Hedgebay said investors typically paid more than net asset value until August 2008, when they started dumping stakes.

The firm has operated a secondary market on which pension plans, endowments and other institutional investors can buy or sell hedge fund holdings since 1999. The volume of trading in September was 25 percent higher than last year and 15 percent higher than in the first nine months of the year, Hedgebay said.  Source

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