Hedgebay, a hedge fund secondary market provider, has launched a pricing and valuation service to assist hedge fund investors in determining the present value of the assets in their portfolios.
The historical nature of the hedge fund market means that there is limited transparency and many secondary market users are forced to trade assets without all of the information necessary to make an informed decision.
The consultancy service will give investors holding illiquid assets a confidential means of price discovery across their portfolio.
With greater insight into their assets investors will be able to approach the market with the most effective trading strategy and the ability to maximise the value of their securities should they wish to sell.
The service will provide clients with valuations for their portfolios and will advise on how best to manage the component assets. The service will specialise in pricing hard-to-value assets such as those that are locked up or side-pocketed, have long redemption periods or suspended rights or those in funds that are undergoing restructuring.
The service is tailored to the needs of each investor, based on their goals for the process. Using secondary market, Hedgebay will then provide a detailed assessment of the investor’s portfolio, providing values for each asset based on a range of criteria.
Hedgebay already has a number a clients using the service, including banks, funds of funds, auditors and liquidators.
Elias Tueta, co-founder of Hedgebay, says: “This service is not only of great benefit to the individual using it, but to the secondary market as a whole. A wide-scale valuation and pricing system will bring greater transparency and efficiency to an area where there is currently only a limited amount. It will give individuals a much clearer picture of the value of the assets in their portfolio and allow them to make better informed decisions about how best to deal with them. In turn, more informed investors will be more willing to trade and will, as a result, create a deeper and more liquid market.”
