Hedge Fund Investors Seek to Unload Shares on Secondary Market (Hedgebay ?)

Money Market Executive ^ | 10/22/08

[TigerLikesRooster]

Hedge Fund Investors Seek to Unload Shares on Secondary Market

Flooded With Redemptions, Many Hedge Funds Putting Up Restrictions

By Editorial Staff

October 22, 2008

With losses mounting—the average hedge fund is down 10% this year—hedge fund investors are increasingly looking to head for the exits, and hedge funds are putting up barriers, Dow Jones reports.

As a result, many investors, including pensions, endowments and hedge funds-of-funds, are resorting to alternative means to unload their shares, particularly the secondary market, even if it means selling at discounts as high as 50%.

One auction that matches buyers and sellers is Hedgebay, which says it has many listings offered at discount. While the market was strong and hedge funds were outpacing it, some enterprising hedge fund investors were looking to take advantage of the environment, and selling their shares at a premium.

[TigerLikesRooster]

I suspect the same hedge funds which blocked the redemption could be behind this outfit called Hedgebay.

[TigerLikesRooster]

Ping!

[dennisw]

A big LOL for Hedgebay!
Hedge fund death watch--->>>

The Hedge Fund Implode-O-Meter - tracking the hedge fund implosion ...

Tracking the ensuing 'implosion' of the hedge fund sector.
hf-implode.com/ - 45k - Cached - Similar pages - Note this

Eidesis Capital Update Russell Shuts Down Two hedge Funds Ospraie Fund Modulus Europe (Powe Capital)	Rumson Capital Cornerstone Quantitative ... GoldLink Capital Pentagon Capital Management
More results from hf-implode.com »

 

[dennisw]

Hedge fund "industry" slashes jobs
I like how they call these useless eaters an industry
Industry means you make something material and useful to mankind

Janus, AllianceBernstein Slash Jobs; Cuts May Worsen (Update1)
Bloomberg - 9 hours ago
Hedge funds have already cut 3000 to 5000 jobs and may eliminate 10000 by year's end as they cope with their biggest losses in two decades, according to ...JNS - AB

Hedge Funds May Cut 10000 Jobs, Options Group Says (Update1)
Bloomberg - Oct 16, 2008
By Saijel Kishan Oct. 16 (Bloomberg) -- Hedge funds may cut as many as 10000 jobs this year as they struggle with their biggest losses in almost two decades ...
Hedge Funds May Shed 10000 Jobs In ‘08 FINalternatives
all 7 news articles »

Bloomberg

Buyout, Hedge Funds Are Next Dominos: Matthew Lynn (Correct) Bloomberg - Oct 21, 2008 The executive search firm Options Group estimates that there may be as many as 10000 job losses

 

[TigerLikesRooster]

Roubini said hundreds of them would fail in coming month, and a week of bank holiday is possible.

I posted the article, but since I put some excerpts from Bloomberg, it was yanked.

Anyway the parasites would be dying in numbers while causing all of us royal pain. However, letting them survive and keep sucking blood from economy is worse.

I hear there are "good hedge funds," but I suppose their influence is rather minuscule.

[dennisw]

Roubini said hundreds of them would fail in coming month, and a week of bank holiday is possible.

On TV he looks like an unhappy man. This may make him emphasize the negative.
 But I respect this man who is more right than wrong

I posted the article, but since I put some excerpts from Bloomberg, it was yanked.

Anyway the parasites would be dying in numbers while causing all of us royal pain. However, letting them survive and keep sucking blood from economy is worse.

Successful parasites don't kill their host. They are content with sucking their blood on a more modest scale

I hear there are "good hedge funds," but I suppose their influence is rather minuscule.

I'm sure there are tons of good ones but they also use derivatives
I would ban all derivatives and securitization of mortgages.... America did fine for 190 years without them

Roubini said hundreds of them would fail in coming month, and a week of bank holiday is possible.

On TV he looks like an unhappy man. This may make him emphasize the negative.
 But I respect this man who is more right than wrong

I posted the article, but since I put some excerpts from Bloomberg, it was yanked.

Anyway the parasites would be dying in numbers while causing all of us royal pain. However, letting them survive and keep sucking blood from economy is worse.

Successful parasites don't kill their host. They are content with sucking their blood on a more modest scale

I hear there are "good hedge funds," but I suppose their influence is rather minuscule.

I'm sure there are tons of good ones but they also use derivatives
I would ban all derivatives and securitization of mortgages.... America did fine for 190 years without them

[dennisw]

Roubini said hundreds of them would fail in coming month, and a week of bank holiday is possible.

That and other factors would cause bank holiday
James Sinclair said there would be a major event in the next 14 and 89 days from now (written Oct 22 2008)

Dear Friends,

Gold is a currency that you will see perform as the currency of choice. There is no doubt we are headed into a planetary Weimar experience to some degree.

Dollars are being created faster now than in any other period in history. The Fed and treasury are guaranteeing everything from money market funds to large corporate entities in one way or another.

The first valuation of worthless OTC derivatives via a public sale of these at .0875 to .02 cents shocked anyone with a brain. Now the downturn in business is hitting financial entities and shortly litigation will smoke whatever is left.

The FDIC is already yelling for additional and significant funding from congress as their capital contracts on every Friday’s bailout.

People expect things to return to normal in 2010. That is a fairy tale.

The Fed has only started creating money for bailouts. You saw what happened when they stepped away from Lehman. If you say you didn't look out the window.

All these bailouts and Federal guarantees on credit items constitute a white wash on a falling economic structure going out of control and soon.

The out of control point of major planetary dislocation is between 14 and 89 days from now.

 

[TigerLikesRooster]

Why is the upper end of time period 89 days? Do you know?

[dennisw]

“We’ve reached a situation of sheer panic,’’ Roubini, who predicted the financial crisis in 2006, told a conference of hedge-fund managers in London today. ``There will be massive dumping of assets’’ and ``hundreds of hedge funds are going to go bust,’’ he said.

“Systemic risk has become bigger and bigger,’’ Roubini said at the Hedge 2008 conference. ``We’re seeing the beginning of a run on a big chunk of the hedge funds,’’ and ``don’t be surprised if policy makers need to close down markets for a week or two in coming days,’’ he said.

http://www.bloomberg.com/apps/news?p...d=ax3ZRmJRccyo

[dennisw]

Why is the upper end of time period 89 days? Do you know?
_______________________

My guess is part his own professional experience and part Hindu astrology. He is a follower of Sai Baba

[TigerLikesRooster]

Yes, that's the one.

[TigerLikesRooster]

I see. So his use of the word “planetary” is not just figurative.:-)

[dennisw]

Posted On: Thursday, October 23, 2008, 7:04:00 PM EST What Happens In Iceland Doesn't Always Stay In Iceland      Author: Jim Sinclair

Dear Jim,

I believe what happens to the economy in Iceland will be a test-case for the US. Iceland is going for an inflationary depression since the banking system crashed and foreign investors stopped investing in the country. The same is starting to happen in Eastern Europe. I suppose it is only a matter of time when foreign investors stop investing in the US. Then you will soon have the Iceland experience. Shouldn't we be looking for Weimar in Iceland, then Eastern Europe, then the US, and then the planet?

"Iceland's economy may contract as much as 10 percent, according to Lars Christensen, chief analyst at Danske Bank A/S in Copenhagen. The central bank on Oct. 15 cut the benchmark interest rate by an unprecedented 3.5 percentage points to 12 percent, indicating policy makers have given up trying to control inflation. Prices may surge as much as 75 percent in coming months, Christensen estimates. "

Click here to view the full article...

Also important, Vladimir Putin warns his countrymen about buying dollars. He called it 'dubious business'. I guess you are on his side now!

Click here to view the article...

Thank you for some great articles in the last week.

All the best!
CIGA Jeroen

 

Dear Jeroen,

The most difficult concept for the professional public to understand is that hyperinflation can exist along with a totally disastrous economic environment. Hyperinflation falls flat because it fails to take into account the infinite velocity of money that a Weimar creates during a depression economy as a product of throwing monetary discipline at the wall.

When you pay people three times a day to keep up with prices, consider the mammoth daily increases in all private and business transactions in terms of the total number of currency units. What happens to the velocity of money? The turnover increases with the rate of inflation until both are hyper creating an unstoppable spiral.

Few understand that monetary inflation proceeds and sustains price inflation. For this reason world business in a rat hole with credit still jammed up will lead to hyperinflation in 2009-2010.

If world business is perceived to have bottomed and credit flows are re-established, this will bring hyperinflation in 24 hours.

We have heard both Russia and China chime in today on their clear perception of the pre-election falsely valued US dollar and government interference in not only gold but energy and food.

The PPT is working overtime on those index spreads but they only have a short time (13 to 88 days) before they have to throw it into what is most likely inexperienced hands.

Yes, a planetary Weimar is on the menu. Russia, the Middle East and China may just be the top survivors. Africa might just come into its own in such a scenario due to the amount of raw material and gold resources they have.

Respectfully,
Jim

[dennisw]

Yeah but 75% his own long experience in gold and gloom and doom and maybe 15% Hindu mysticism. 10% something else

I saw Jim Sinclair on Wall St Week TV show back in the early 1980s. He’s been at this for decades

[M. Espinola]

Some additional news items:

Russian hedge funds face closure

edge funds post record loss

Investors Flee as Hedge Fund Woes Deepen

[TigerLikesRooster]

Hmm... not a bad news. The natural correction is setting in.

[zeestephen]

Amid the predictions of financial collapse, no one on this thread seems to have noticed that gold and the SP 500 have BOTH declined an identical 29% since 15 March 2008.

In fact, the SP 500 OUTPERFORMED gold from 15 March 2008 to 02 October 2008, by 20%-25% in three different months.

I agree those numbers can mean a lot of different things, but financial panic does not appear to be one of them.