Fri, Aug 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds regain their ability to restrict redemptions - study

Thursday, February 27, 2014

Bailey McCann, Opalesque New York:

A new hedge fund study released today by Seward & Kissel reveals notable finding: a power shift between hedge funds and investors is underway. Hedge funds now have a significantly increased ability to restrict and prevent redemptions, affecting liquidity - 89% of new funds (as compared to 64% in 2012) restricted redemptions to a quarterly or longer-term basis - a 25% increase.

As of last year, only 11% of funds permitted monthly redemptions. Also of note, no funds in the study say they plan to go down the path of general solicitation now allowed under the JOBS Act. That reaction is consistent with Opalesque's reporting on the issue which has already noted general disinterest and aversion to the compliance risks involved in advertising.

Lock-ups are present in about 19% of funds. On the redemption side, the vast majority of funds (89%) only allow redemptions on a quarterly or longer basis. For the 11% allowing monthly redemptions, that cohort has shrunk significantly from the 36% of funds in the group in 2012.

Seeding deals are also on the rise, an estimated 15% of all fund launches represented in the survey came with seed capital. This represents a shift in the perception of seed deals which has historically been regarde......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Commodity hedge funds lose most in three years as rout deepens, Funds bet on Shell deal as oil prices plunge[more]

    Commodity hedge funds lose most in three years as rout deepens From Bloomberg.com: Hedge funds betting on commodities lost the most in almost three years in July as the price-rout deepened. Funds lost money for a third month, according to the Newedge Commodity Trading Index, which was re

  2. Investing - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  3. JTC acquires Kleinwort Benson’s fund administration business[more]

    Bailey McCann, Opalesque New York: JTC has completed the acquisition of Kleinwort Benson’s fund administration business, boosting assets under administration (AuA) to $56 billion. Kleinwort Benson is based in the Channel Islands, South Africa. The transaction, which relates to the whole of K

  4. Performance - Hedge funds set to bank millions by short selling during London share slump, The China market chaos has made this hedge fund its most money in 2 years, Odey hedge fund said to surge 9% betting against China, Hedge funds with long-held bearish views on China rack up profits, Hedge funds in U.S. seen curbing damage from August turbulence, Hedge funds collect on their predictions of a fall, How did managed futures do while the Dow was down 1000[more]

    Hedge funds set to bank millions by short selling during London share slump From TheGuardian.com: Hedge funds are set to bank tens of millions of pounds from the slump in share prices in London, having bet almost £18bn that the FTSE 100 would fall. The funds making the bets include Lansd

  5. Opalesque Exclusive: John C Head IV leaves alternative investment firm Gallery Capital, David Harrison joins as co-CIO[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: John C Head IV, former president and co-founder of Gallery Capital Management, an alternative inv

 

banner