Hedge Fund Blue Light Specials Are Over

The latest monthly report out of Hedgebay indicates that if you were in the market for a hedge fund and couldn't buy one for 80 cents on the dollar in March, you are fresh out of luck - time to pay up for that invaluable Ken Griffen LP interest at a cool 10%+ premium to the low price.

However, even as Hedgebay confirms "One thing is for certain, there is still a tremendous amount of hedge fund shares that are suspended that need to be worked through and that will take some time." One could say the same thing for foreclosed homes, toxic loans, 30 year USTs, excess deposit reserves sitting in bank vaults, worthless retail companies waiting to issue debt to Citadel, worthless REITs waiting to issue stock to Cohen and Steers, SPY shares not yet purchased by JPM, and many other non-second derivative items.



hat tip Ronin Sphere: Related Content

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Hedge Fund LP Secondary Market Interest Update

Secondary market hedge fund interests continue to be actively traded, and as LP broker Hedge Bay indicates, the discounts for offers have hit unprecedented levels. The most recent level of Hedge Bay's Secondary Market Index Value hit an all time low of 80.31 for the month of March.



In terms of specific bids and asks, presented below are the most notable blocks for sale over the past 10 days:

Quantek Opportunity Fund: $15.0 million
Diamondback Offshore Fund: $10.0 million
Brevet Capital Special Opps: $10.7 million
New Stream Capital Fund: $8.2 million
Global Secured Capital Fund: $6.5 million
Whitecap Offshore: $5.0 million
Hound Partners: $2.0 million
Contrarian Capital Finance: $1.9 million

On the bidside, there have been quite a few interested buyers as well, the most notable of which are the following brand name hedge funds:

Basso Investors: $10.0 million
GoldenTree Offshore: $10.0 million
Millennium: $8.0 million
Third Eye: $19 million (offset by $12.5 million for sale)
Ore Hill: $5.0 million
Paulson Advantage: $5.0 million
King Street Capital: $5.0 million
Pershing Square: $5.0 million
Jana Partners: $5.0 million
One East Partners: $1.8 million

Ultimately, whether a transaction occurs depends on whether the buyer and seller are willing and able to agree on a final transaction price. It is likely that the bid/ask spreads in this highly illiquid market would be wide enough to prevent all but the most determined sellers and buyers. Sphere: Related Content

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Hedge Fund Secondary Market Update - Jan 27

Nothing too exciting in the Jan 27 roundup. Not surprisingly, of 11 markets, 9 are offers and the two lonely bids are for a paltry $500k in Horseman Global, and for a more impressive $10 MM in Allan Teh's Kamunting Street. On the ask-side, there is $58 million of selling interest, split among Linden, Aristea, Polygon, Whitebox, Harbinger, Indus and Impala (the last one people can't seem to sell enough of). Sphere: Related Content

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Hedge Fund Secondary Market Update

Today's vomitfest in the markets apparently was greeted by holders of HF LP interests with a sense of utmost urgency/capitulation. In a nutshell - not a single bid, and over $150 million in ask interest just on Feb. 21. Among the more notable parties on the selling block:

SAC Multi Strat - $15 mm
Eton Park - $7 mm
Atticus - $20 mm
Pershing Square - $20 mm
Conatus - $20 mm
Wexford (Spectrum and Catalyst) - $30 mm

If anyone has color as to where these clear we would be very interested. Sphere: Related Content

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Blue Light Special: Hedge Fund Secondary Market Update

On January 18 hedgebay.com announced the following $10 million blocks for sale:
- SAC Multi Strategy
- Montpellier Resources
- ZLP Offshore

Additionally, an investor with some foresight is bailing out of $6.65 million in Millennium. Another major selling block recently has been a $20 million piece of Elliott International that a seller has been dangling for a while.

On the other side, Ore Hill must have done something right: there is $35 million in bid side interest.

For people new to this whole hedge fund thing, and why archaeologists may be looking for its bones soon enough, read the full scoop here, courtesy of Louise Story of the New York Times (Deathwatch CDS at 962bps) Sphere: Related Content

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