Hedge funds should rethink approach to valuing illiquid assets

05/13/2011 | Hedgeweek (London)

Hedge funds should reconsider using the Black-Scholes model and other theoretical models when valuing illiquid assets, according to commentary in HedgeWeek. Instead, managers should choose a method that accounts for illiquidity as part of an asset's fair value under generally accepted accounting principles. Failure to do so increases the chance of inaccuracy in financial statements.

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Hedgeweek (London)