Hedge Fund News: Hedge Fund Exit Requests Rise
Posted by Louie Drake on Thursday, February 26, 2015 Under: Finance
One of the biggest hedge fund news that shook the market early this year involves the rising number of exit requests, both from the US and UK investors. According to Marcel Woo of China Topix, some of the biggest US-based hedge fund managers have unloaded their shares from China’s e-commerce giant Alibaba by the end of last year.
Such a move might be a good decision as the company’s shares fell by about 27.6% on the New York Stock Exchange, landing at USD 86.85 from a whopping USD 120 in November 2014. A downpour of exit requests was observed just months after a number of hedge fund managers in the United States grabbed Alibaba’s initial public offering (IPO) of USD 25 billion.
Woo further explained that the large percentage of the hedge funds that slashed their stake in the company were the early birds at Alibaba’s IPO, including Leon Copperman’s Omega Advisors, Barry Rosenstein’s Jana Partners LLC and David Tepper’s Appaloosa Management, while Viking Global Investors LP, Tiger Management and Moore Capital Management only decided to decrease their stakes from the previous quarter.
Bloomberg also announced that several hedge funds exit housing securities due to increasing prices. “Hedge funds that profited on residential mortgage debt after the financial crisis such as Pine River Capital Management and Canyon Partners are trimming their bets as prices rise,” Sabrina Willmer reported. “Gorelick Brothers Capital is also exiting investments in both uninsured and government-backed home loan securities,” the report added.
These firms saw deteriorating opportunities as investors pile into the market and issuance declines, leading to non-agency debt’s irrepressible price hike of up to 176%, from a low USD 29 in 2009. With these scenarios, investors realized that the real estate market has gone from a great opportunity to a mediocre one.
Meanwhile, in the UK, Reuters cited SS&C GlobeOp Forward Redemption Indicator’s report that shows a 3.64% increase of withdrawal requests this February, as compared to last year’s 3.38% and last month’s 2.49%.
The exit strategy, a method by which a venture capitalist cashes out an investment, is no longer new to the market. Sy Harding, a Forbes contributor, even mentioned that without an exit strategy, one will lose at investing. “Most use trend-following strategies, such as the breaking of support levels as a guide. So they also tend to be bullish and fully invested at market tops, but have an exit strategy that will hopefully get them out without giving too much back,” Harding said.
Hedge fund news like these give firms, administrators and investors a glimpse of the recent market trends and threats. But to constantly keep an eye on these strategies and updates, as well as cope with the today’s market dilemmas, consult an asset management company that could help you attain your financial goals.
Such a move might be a good decision as the company’s shares fell by about 27.6% on the New York Stock Exchange, landing at USD 86.85 from a whopping USD 120 in November 2014. A downpour of exit requests was observed just months after a number of hedge fund managers in the United States grabbed Alibaba’s initial public offering (IPO) of USD 25 billion.
Woo further explained that the large percentage of the hedge funds that slashed their stake in the company were the early birds at Alibaba’s IPO, including Leon Copperman’s Omega Advisors, Barry Rosenstein’s Jana Partners LLC and David Tepper’s Appaloosa Management, while Viking Global Investors LP, Tiger Management and Moore Capital Management only decided to decrease their stakes from the previous quarter.
Bloomberg also announced that several hedge funds exit housing securities due to increasing prices. “Hedge funds that profited on residential mortgage debt after the financial crisis such as Pine River Capital Management and Canyon Partners are trimming their bets as prices rise,” Sabrina Willmer reported. “Gorelick Brothers Capital is also exiting investments in both uninsured and government-backed home loan securities,” the report added.
These firms saw deteriorating opportunities as investors pile into the market and issuance declines, leading to non-agency debt’s irrepressible price hike of up to 176%, from a low USD 29 in 2009. With these scenarios, investors realized that the real estate market has gone from a great opportunity to a mediocre one.
Meanwhile, in the UK, Reuters cited SS&C GlobeOp Forward Redemption Indicator’s report that shows a 3.64% increase of withdrawal requests this February, as compared to last year’s 3.38% and last month’s 2.49%.
The exit strategy, a method by which a venture capitalist cashes out an investment, is no longer new to the market. Sy Harding, a Forbes contributor, even mentioned that without an exit strategy, one will lose at investing. “Most use trend-following strategies, such as the breaking of support levels as a guide. So they also tend to be bullish and fully invested at market tops, but have an exit strategy that will hopefully get them out without giving too much back,” Harding said.
Hedge fund news like these give firms, administrators and investors a glimpse of the recent market trends and threats. But to constantly keep an eye on these strategies and updates, as well as cope with the today’s market dilemmas, consult an asset management company that could help you attain your financial goals.
In : Finance
Tags: hedge fund news
