Some fund-managers invest long-term, taking many years to get real profits. How they handle customers that invested money 2 or 3 years ago, and now ask how are their investments going. They tell them that they have losses now, but they should wait more years? How they keep customers from going out the front door with their money?
its called a track record and/or worked in a lower roll with a company that had a track record (as well as lock up : ) )
This really depends. The guy saying that the investor has been there for 2-3 years, then they're trying to leave due to under-performance. It's almost impossible to have them sign a new LU. Unless it's some exotic product or REIT related, it's hard to stick a long LU period in the contract. I'm sure ET crowd don't like to admit this but 1/2 of the hedge fund game is marketing / pitching sales. He has to convince the investors to stay, by being slick.