Thursday, February 19, 2009

Fortress, Tudor and Threadneedle Permit Redemptions Again

Hedge Fund Alert reports that, as expected, more large hedge funds are following Ken Griffin's example and are reversing cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 course on suspending redemptions. Some of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 larger names that are starting to let investors get cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir much needed if significantly reduced cash are Fortress, Threadneedle and Tudor.

Fortress blocked redemptions from its flagship Drawbridge Global Macro Fund in December, telling investors at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 time that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y would get 72% of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir requested withdrawals by April. But on Jan. 22, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 New York firm moved up cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 timetable, promising investors cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y would get cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 72% back this month, subject to a 10% hold-back pending a final audit. The remaining 28% of assets that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 investors sought to redeem — representing illiquid investments — has been put into a side pocket to be paid out over 18 months.

Threadneedle told investors last week that it will now honor redemptions from its Threadneedle Emerging Debt Crescendo Fund. The announcement came three months after cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 London firm said it was suspending withdrawals. The fund, which invests in emerging-market debt, had $131.5 million of assets at yearend. It suffered a miserable October that contributed to a 19.4% loss for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 year.

Tudor shocked cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 industry in November when it suspended redemptions from its flagship Tudor BVI Global Fund and divided cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 vehicle into two funds, one containing its liquid assets and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r its illiquid holdings. The vehicle had $9.8 billion under management at yearend, and was down about 4.5% for 2008.

Tudor also eliminated a clause that would have permitted cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 fund’s managers to set a 25% limit on redemptions from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 liquid fund, for any reason. Now, Tudor won’t invoke a“gate provision” for any reason.
The ploy of suspending redemptions has likely come to an end as hedge funds, in typical short-sighted approach to everything, saw an up January and decided that investors will be placated by an up 2-3% and will cancel previous redemption requests. However, with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 market continuing to flounder and hedge funds likely set to post a very bloody February, this could prove a costly mistake, as it is likely to accelerate cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 forced selling of more and more liquid and illiquid assets as natural bids disappear from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 market. Sphere: Related Content
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