Long notice periods, gates make it difficult for
investors to exit
By Eric Baum
With monthly hedge fund performance hitting a 10-year low in
August, many expected investors to take their money and run.
But outside of a few names that either suffered big capital
outflows or put up gates to keep investors from bolting, little
has happened. Why? Hedge fund managers and investors say that
lengthy notice periods mean many hedge funds may have dodged a
Some funds that are heavily invested in structured credit or
quantitative strategies are still suffering, and investor
redemptions have been confined to those sectors as is
expected to continue to be the case. The most widely reported
redemption was from Goldman Sachs Global Alpha fund,
which lost $1.6...