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By Benedicte Gravrand, Opalesque London: John Godden is a long time and well known commentator and advisor on hedge fund investing. He is a former managing director at HFR in Europe and set up the hedge fund advisory firm IGS Group in 2006 in London. He shared with Opalesque some of his insights on the state of the hedge fund industry.
Strategy redemptions
Last week was the deadline for last-quarter redemptions in the hedge fund industry, which was much talked about as everyone expected heavy redemptions due to general (actual and expected) poor performance. Since then, we heard of many hedge funds blocking redemptions because of Lehman (Amber, Wyser-Pratte, Cheyne Capital, Absolute Return Partners, Olivant, Salida, etc.) or simply due to lack of available liquidity (Close Man). Some closed due to heavy redemptions (Laurus Capital, Forsyth’s sub funds) or are expected to (the Asian HF industry).
There are two types of redemptions in the industry; one is investors taking money out of the hedge fund space and the other is driven by strategy re-allocation.
There is always a level of redemptions when people move money from manager X to manager Y as investors have increasingly active views on top-down strategy allocations, and that is not money leaving the industry.
Godden said: “This has accelerated a lot in the last six months whereby people have been more inclined to take their mone...................... To view our full article Click here
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