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From Kirsten Bischoff, Opalesque New York:
Hedge Fund Research estimates the hedge fund industry lost approximately 1000 funds over the course of the past year. The current wave of closures may have abated somewhat but even through this summer the news of shuttering funds has continued. Just over the past few days, in putting together this series Opalesque has carried news of funds closing for a myriad of reasons: SEC investigations, performance below highwater marks, decimated asset bases, the health of a manager, etc.
Not all funds close under forced liquidations, many closures occur because partners decide to part ways, or as in the case of the recent Atticus announcement - a manager wants to spend "more time with his family". This series will look at a few of the most important aspects of closing a fund, and some of the best practices to be considered to protect future endeavors.
Time horizons: anywhere from 6months to 3-4 years of your professional life
"Every situation is different. There is no standard amount of time to close a fund," Ron Getto, principal at investment firm consultancy Constellation Investment Consulting Group told Opalesque.
The New Jersey-based consultancy advises hedge fund clients on operational risk management and also specializes in helping managers tailor plans for orderly wi...................... To view our full article Click here
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