According to Sydney-based Hatfield Liptak Advisors’ November newsletter, eight fund of hedge fund products have been hit by liquidity concerns due to a quadruple whammy of increased redemptions; decreased investor inflows; reduced or nil income from investment performances; and higher cash collateral required for currency hedging.
The funds hurt include two Select Gottex Market Neutral Funds, three Goldman Sachs JBWere multi-strategy funds, two HFA Diversified Investments Funds and the AMP Capital Total Return Fund. All eight fund products have been placed ‘On Hold’ by funds rating agency S&P.
S&P Fund Services analyst Simon Scott points out that due to the credit crunch, many managers now also face a reduced ability to draw on previously established credit facilities.
To manage their cash reserves, the Select Gottex and GSJBWere fu......................
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