Hedge Fund Redemptions

I know there are a lot of Hedge Fund redemptions, that are putting more pressure on the market. Does anyone know how many days they have to fill requests, I'm trying to get an idea of when they will stop doing any portfolio liquidations.

 

Any redemption requests now will be for EOY. Selling to accommodate cash needs can take place all through the quarter.

 

From the news media, I understand the deadline for redeeming your shares at many funds was Sept. 30. Funds were said to already have cash reserves to meet redemptions. With the wholesale liquidation in markets you can assume a lot of it has been done already. But beyond that I am not sure how it actually works and whether redemptions were higher than expected and there is more liquidation to come.

 

I have a friend who works at a fund of funds and he has been sending redemption notices on billions for his investors. I believe the funds are due on the last day of the year so the funds have until then to raise cash. He see the returns of alot of shops and says they are abysmal so expect more redemptions at the end of the year unless things turn around.

 

I posted an article link somewhere else. According to that, most hedge funds have flexibility in redemptions, and until the end of the year fund managers typically try to convince the clients to stay on board.

 

There will be a lot of hedge funds suspending investor redemptions at the end of the year as well as enforcing the Gate clause.

 

My understanding was that not all hedge funds had that option. What percentage can suspend and/or throttle redemptions?

 

Almost all of them. At least the ones that matter...

 

Funds that do real hedging, i.e. shorting, are actually doing great in this market.

 

really?




Index / Sub Strategies Value Sep 08 YTD 1 Year Annl* Std Dev* Sharpe*
Credit Suisse/Tremont Blue Chip Index 116.91 -7.80% -12.45% -10.93% 3.07% 5.28% 0.01
Convertible Arbitrage 86.93 -13.91% -27.21% -28.60% -2.68% 8.82% -0.65
Dedicated Short Bias 69.76 -18.85% -8.93% -2.51% -6.73% 16.46% -0.59
Emerging Markets 187.32 -9.65% -20.53% -15.05% 12.92% 10.48% 0.94
Equity Market Neutral 111.54 -0.20% -4.85% -5.88% 2.14% 2.34% -0.38
Event Driven 139.22 -7.42% -10.82% -9.92% 6.61% 5.96% 0.60
Fixed Income Arbitrage 103.03 -7.88% -9.31% -6.53% 0.58% 5.04% -0.49
Global Macro 111.77 -9.78% -8.84% -2.17% 2.18% 7.63% -0.11
Long/Short Equity 111.96 -10.83% -21.54% -21.49% 2.21% 8.31% -0.10
Managed Futures 125.02 1.18% 7.48% 10.41% 4.42% 11.73% 0.12
Multi-Strategy 117.80 -8.11% -13.73% -13.76% 3.22% 5.72% 0.03