Hedge funds are setting a new trend by listing on exchanges to raise funds, with Brevan Howard Asset Management and Polygon Investment Partners being two of the latest, The Wall Street Journal reports.
The trend is notable, as it marks hedge funds’ willingness to divulge information about themselves and seek assets from average investors.
The upside for hedge funds is that it will also give them a permanent stream of money, for any investor looking to sell shares of a closed-end fund that trades on an exchange must trade them on the exchange.
Sources say that Brevan Howard is looking to list on an exchange either in London or Amsterdam, hoping to raise between $650 million to $1.3 billion. Polygon is said to be in the very early stages of its plan.