Next UP...Redemptions On Hedge Funds

Discussion in 'Wall St. News' started by ehoofnagle, Sep 24, 2008.

  1. Deadlines to redeem capital is fast approaching. I think Sept. 30th for many funds.

    People and Institutions want out and need to get in line. This will create a huge shake out in the industry.
    Managers will not be able to keep up the returns that they have seen(bad mkt, no shorting, new restrictions and regulations, no leverage). Investors are not going to pay 2 and 20 to lose money. They will be running for the exits. This will create more losses which will then lead to other funds trying to take advantage of their peers problems. This will create an even more vicious downturn.

    What then? The Government takes care of them also? Where does it end?
  2. alot of them are 50% in cash.

    But ya, you have some good points.