Taking cover from falling stocks
Pre-IPO trades have proven a good way for hedge funds to get the inside track on hot stock listings in Asia. But with US credit problems and equity volatility on the rise, investors need to protect themselves against the possibility of a downturn. William Rhode reports
Credit problems in the US and an increase in equity volatility worldwide have not dampened activity in the lucrative, multi-billion-dollar business for pre-initial public offering (IPO) trades in Asia. But awareness that the region's stock markets may be overheated, particularly in India and China, is prompting pre-IPO investors to increase their equity demands and ramp up hedging activities in anticipation of a potential downturn.
"The business of pre-IPOs in Asia is still going strong; we're
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