{"id":6390,"date":"2007-08-02T00:00:00","date_gmt":"2007-08-02T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-clash-over-question-of-value","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/08\/2007\/hedge-funds-clash-over-question-of-value.html","title":{"rendered":"Hedge funds clash over question of value"},"content":{"rendered":"<p>  FT Alphaville- Bitter disputes are developing behind the scenes in the hedge fund industry about the way funds are valuing some assets for their end-of-month performance reports \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 and these  tensions could delay awaited performance reports on the net asset value (NAV) of hedge funds\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 portfolios in July, <a title=\"ft\" href=  \"http:\/\/www.ft.com\/cms\/s\/76af029c-40a4-11dc-9d0c-0000779fd2ac.html\">says Gillian Tett<\/a>, the FT\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s capital markets editor.<\/p>\n<p>  In particular, the recent violent swings in the credit markets are making it unusually hard for some funds to agree the value of these assets with their administrators, particularly in sectors  linked to assets such as subprime mortgages, says Tett.<\/p>\n<p>  That may mean investors in hedge funds that do issue monthly NAV reports will be forced to wait longer than usual for the July reports.<\/p>\n<p>  It may even form fertile ground for future lawsuits, as sharp differences in the perceived value of hedge fund portfolios could influence investor confidence, notes Tett.<\/p>\n<p>  \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThere is a lot of wrangling going on behind the scenes, because it\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s getting hard to agree [about] how to value a lot of stuff,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d one US banking official told Tett. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe bid-offer spreads can be  incredibly wide &#8211; and that can really affect the NAV.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d<\/p>\n<p>  The data on funds\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 NAV for the end of July is currently awaited with particular eagerness by many credit funds, since some are believed to have suffered painful losses as a result of the recent  market turmoil &#8211; not only in the subprime sector but corporate credit markets in general.<\/p>\n<p>  [In the <a title=\"Alphaville post\" href=\"http:\/\/ftalphaville.ft.com\/blog\/2007\/08\/01\/6273\/keeping-count-of-the-credit-hedge-victims\/\">series of woes<\/a> of hedge funds, FT Alphaville notes the  heightened appetite for news of certain funds\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 July performances \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 for example, Tudor Investments which, as the WSJ <a title=\"wsj\" href=  \"http:\/\/online.wsj.com\/article\/SB118600443512785262.html\">reports<\/a> Thursday, had an unusually bad July].<\/p>\n<p>  Indeed, many bankers assume there will be further hedge fund implosions during coming weeks, says Tett.<\/p>\n<p><a href=\"http:\/\/news.google.com\/news\/url?sa=T&amp;ct=us\/8-0&amp;fd=R&amp;url=http:\/\/ftalphaville.ft.com\/blog\/2007\/08\/02\/6292\/hedge-funds-clash-over-question-of-value\/&amp;cid=0&amp;ei=HIOxRonoHIO00QHwk5myBQ\"><strong>ReadComplete Article<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FT Alphaville- Bitter disputes are developing behind the scenes in the hedge fund industry about the way funds are valuing some assets for their end-of-month performance reports \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 and these tensions could delay awaited performance reports on the net asset [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6390","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/6390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=6390"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/6390\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=6390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=6390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=6390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}