|The continued underperformance of hedge funds is driving an increasing number of investors to offer their partnership interests at steep discounts on the secondary market. According to the New York Post, secondary trading in hedge fund interests is expected to double again in 2012 as year-to-date hedge fund returns continue to trail the S&P 500 3.27 percent to 9.68 percent. |
Investors are showing no reluctance to part ways with some of the high profile hedge fund managers, such as Steven Cohen of SAC Capital Advisors LP (40 percent discount), Stephen Feinberg of Cerberus Capital (20 percent discount), Marc Lasry of Avenue Capital (45 percent discount) and Paul Singer of Elliot International (25 percent discount). Conversely, some hedge funds are attracting premium bids on the secondary market, such as Oculus Capital and Greenlight Capital.
|Hedge Fund Lists|