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From the Opalesque team:

Opalesque has learned that London-based Trafalgar Capital Advisors, will be taking steps to initiate the liquidation process for the firm's Trafalgar Capital Specialized Investment Fund FIS due to redemption requests from long standing investors.  In a communication with clients, Chairman Andrew Garai said, "In the absence of substantial new subscriptions the Investment Manager has been increasingly constrained by the burden of redemptions". 

In the client communication the firm alluded to the fact that the longstanding investors who were redeeming were mainly doing so due to their own liquidity needs - a stark reminder to hedge funds everywhere that the "atm problem" they saw during the height of the liquidity crisis, still lurks as a danger to rebuilding assets, or even to maintaining assets until the industry begins to see significant inflows again.

  Garai cited numerous reasons including the inability to provide adequate stability due to a decreasing asset base as to why it is in the best interest of current investors for the team to initiate the liquidation process. 

  Opalesque Note:  For insight into liquidating a hedge fund see our series on best practices Opalesque Exclusive: Winding Down Funds Part One - Communication core issue as 1000 funds got......................

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