Hedge Fund Secondary Market Update

The secondary market for hedge fund interests seems to follow the general market tick for tick. Last week saw a surprising bid side interest for most hedge funds' LP stakes, although there were the usual pukes.

The two largest offers were in Steel Partners II (not surprising, one can smell Carl Icahn pushing the sell button on this one) and IIG Trade Opportunities NV, for $25 and $15 million respectively. Other $1 million + offers were shown by investors in Capstone, FIT Timber, Valens, Drawbridge Global Opps, Aarkad, and some other relatively unknown hedgies.

Bid side was surprisingly strong with Drawbridge Special Opps interest of $10 million posted. There was $5 million bids in Medley Opportunity Fund, Moore, Caxton, Diamondback, Miura, and MSG, as well as a $3 million bid for Viking Global.