Most hedge funds employ proprietary methodology, resulting in greatly varying valuations of similar securities from one fund to the next.  The degree to which the valuations can differ is dramatic in some circumstances. …

“There is an increased focus on hedge funds in how they value and mark portfolios,” aid Barry Silbert of Restricted Stock Partners (RSP). …

RSP, through its newly launched affiliated Pluris Valuation Advisors, is looking to build a business as a valuation source for PIPE investors.

Pluris believes it has an edge in valuing illiquid securities, especially unregistered equities, through its access to RSP’s historical trading data.  RSP is in the business of crossing blocks of unregistered securities and thus can use a proprietary data set of market values of unregistered securities to ascertain values relative to their registered counterparts. …

(H)aving independent third party valuations could answer some investors’ concerns over hedge funds’ methodology.  Historically, valuing of unregistered securities has been an area of abuse … .