Hedge Funds that Met Redemption Requests in 2008 Starting to See New Inflows
|September 6th, 2009||
|Hedge funds that honored client redemption requests in late 2008 are beginning to see new inflows, while many of the hedge funds that halted redemptions are still trying to pay back investors, according to several cases examined by CNNMoney.|
When the financial system nearly collapsed at the end of 2008, panicked investors began demanding their money back. Hedge funds were forced to liquidate assets in order to return capital to investors, which triggered further losses and continued redemption requests. In an attempt to stop the bleeding, many hedge fund managers resorted to slowing, or altogether stopping, the redemptions.
SAC Capital Advisors, Och-Ziff Capital Management and Moore Capital Management are several hedge funds that did not restrict redemption requests and are now beginning to see new inflows.
Of the funds that limited withdrawals, many are still in the process of paying investors back. According to CNNMoney, Fortress Investment Group has fared better than most and has paid back around 90% of the requested redemptions. On the other end of the spectrum, Tudor Investment Corporation still has significant redemptions to meet, while Citadel Investment Group has yet to even begin honoring redemptions stemming from 2008.
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