And Mayhem it is, as investors are running for the hills, unwilling to find out who the next Madoff turns out to be, and end up stuck with a big fat donut. According to an analysis done by Hedgebay, a secondary hedge fund interest market maker, the average dollar invested in hedge funds traded for an all time low of 87 cents as of November (waiting for December numbers with baited breath).
Total bidside interest across all funds in the secondary market was roughly $900 million, compared with $2.3 billion of sell interest. Among funds where timid investor elements would probably settle for large discounts just to bail ship were Amber, BlueMountain, Castlerigg, Drawbridge, DB Zwirn, Harbinger, Marathon, Polygon and QVT, while others were eager to snap up any available interests at Blackstone Kailix, Millennium, Perry and York. Most transactions would still need the approval of the fund manager to get approval to transact so investors may be stuck holding on to bids or offers for a long time.
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