2n20.com has created an internet platform for the secondary market trading of hedge funds.

2n20.com has created an internet platform for the secondary market trading of hedge funds.

The platform includes fund details and the exact price a buyer or seller expects to realise.

By allowing participants to make counter offers, 2n20.com speeds up the intermediation process while also indicating market tendencies.

As well as offering the already known method to sell mostly distressed funds with long redemption periods below the net asset value, 2n20.com introduces a new segment: the high water mark market. This market is geared towards funds with short redemption periods that are not distressed, therefore selling at net asset value. Because the fund shares are sold including the old high water mark, buyers can save on the performance fee until the old high water mark is reached and share these profits with sellers of the shares. Investors therefore get the chance to participate on fund earnings even after having sold their stake in the fund itself.

Registration on the platform is free, but access will only be granted for accredited investors.