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Company Promotes Secondary Hedge Fund Trading
Some hedge funds, for a number of potential reasons, are closed for further investment by outside investors. In these cases outside investors can try to get into the funds organically or they can enter the fund through the secondary hedge fund market. In the secondary market, interests in a hedge fund are sold by withdrawing investors to investors who want to get into the fund. There are many reasons why an investor would choose to sell through the secondary market instead of simply redeeming. The most obvious is that the investor needs immediate liquidity. While there is a small secondary market in hedge fund interests, it is not always easy to find investors wishing to sell on the secondary market.
In a press release reprinted below, a company is offering a bulletin-board like service which will match hedge fund sellers with buyers. Of course, investors buying on the secondary market must meet the fund’s initial investor requirements initial investor requirements and should also be familiar with the laws related to hedge fund investing. The investor should also conduct the same due diligence on the fund as if the investor was organically investing. If you have any questions on secondary hedge fund investing, please contact us or other experienced hedge fund attorneys.
Other related hedge fund law articles include:
- How to Invest in a Hedge Fund
- Overview of the Securities Laws
- Hedge Fund Due Diligence
- Hedge Fund Attorney
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CogentMarkets to Offer Alternative to Secondary Market Trading of Hedge Funds
Cogent Investment Strategies, Inc. is pleased to announce the creation of CogentMarkets (www.cogentmarkets.com) a new web-based platform created to facilitate secondary trading of hedge funds, private equity and venture capital funds. The website will offer qualified investors and institutions the ability to locate funds they wish to purchase or post funds they wish to sell in a bulletin board format with disclosure of bids and offers. The website will list both domestic (U.S.) and offshore funds and expects to have a global audience of the largest investors and financial institutions.
Fairfield, CT (PRWEB) January 17, 2009 — Cogent Investment Strategies, Inc. (“CASI”) is pleased to announce the creation of CogentMarkets a new web-based platform created to facilitate secondary trading of hedge funds, private equity and venture capital funds. The website will offer qualified investors and institutions the ability to locate funds they wish to purchase or post funds they wish to sell in a bulletin board format with disclosure of bids and offers. The website will list both domestic (U.S.) and offshore funds and expects to have a global audience of the largest investors and financial institutions.
Investors interested in learning more can register at the CogentMarkets website or e-mail us at support at cogentmarkets dot com.
CASI is owned by Glen Beigel and Robert Doeberl and has provided third-party marketing services to alternative investment funds since 1999. CASI is also affiliated with CogentHedge a hedge fund performance analysis database dedicated to providing comprehensive information on alternative investment products. Thomas Prunty has recently joined CASI. Prior to joining us, Tom was the Global Head of Fund Derivative Sales for BNP Paribas and prior to that held positions running a client service team and an operations group for fund derivatives at BNP. Tom will be principally responsible for operating CogentMarkets and its activities. Combined, Glen, Bob and Tom have over 60 years experience working in the alternative investment space and have developed extensive and deep relationships across the industry. We believe we can utilize these to effectively bring buyers and sellers together with the objective of enhancing liquidity in the marketplace.
Note: Transactions are not consummated on the website. Rather, CASI seeks to introduce interested buyers and sellers so that they may finalize transactions.
[...] there have been a number of groups springing up to provide a secondary hedge fund market. While such platforms provide investors with a potential avenue to get out of their illiquid [...]