Sun, Apr 19, 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. Studies - Fund managers bullish on equities, alternative asset classes, Hedge funds starting to spurn emerging markets, Insurance companies take aggressive approach to hedge funds despite restricted exposure[more]

    Fund managers bullish on equities, alternative asset classes From Benefitnews.co: Asset allocation and risk continue to be the top issues for institutional investors in 2015 and, while nobody is sure what the economy will do in 2015, investment fund managers remain positive about investm

  2. Investing - New hedge fund strategy: Dispute the patent, short the stock, David Einhorn bets on AerCap as leasing company avoids turbulence, Top hedge funds reveal these best investing ideas, Hedge funds bet big on PetSmart price bump, Victory Park Capital increases investment in upstart to $500m[more]

    New hedge fund strategy: Dispute the patent, short the stock From WSJ.com: A well-known hedge-fund manager is taking a novel approach to making money: filing and publicizing patent challenges against pharmaceutical companies while also betting against their shares. Kyle Bass, head of Hay

  3. Tiger Global falls 2.9% in March, down 5.3% in Q1[more]

    From Reuters.com: Investment firm Tiger Global Management, one of the hedge fund industry's most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent,

  4. It’s not just hedge funds—IMF study finds stability risks from ‘vanilla’ funds[more]

    From MarketWatch.com: Leveraged hedge funds and banklike money-market funds are the parts of the asset-management industry most associated with risks to financial stability. But a report from the International Monetary Fund suggests that “plain-vanilla” mutual funds and exchange-traded funds also ca

  5. Hedge funds gain 2.4% in Q1 driven by currency and commodity markets[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-b

 

banner