Redemption Delay

Discussion in 'Commodity Futures' started by Sam Mcgee, Aug 10, 2011.

  1. I received the following reply from my hedge fund manager when I asked about the delay for redeeming my funds:

    "It has taken far longer than expected to liquidate this fund. By nature of our mandate, we own long term physical commodities with expiration dates far in the future. With the recent market volatility it is has been very difficult to find buyers of these contracts and commodities. We have been fortunate in that we were able to hedge our exposure to declining prices buy buying in futures contracts market, protecting us from price declines but does not get us immediate liquidity."

    Does this make sense to anyone? Could that be true, or do you think he's making this up as an excuse to stall?
  2. Sounds like BS just look at the volume the last week. Maybe the fund is sitting on a large loss. :(