Marathon has six months' notice but still suspends redemptions

Mon Dec 15, 2008




Of all the recent restructurings, one would be hard pressed to find many instances in which, despite half a year's notice, investors were told they couldn't have their money back. But that's exactly what is happening at Marathon Asset Management. The firm, founded by Bruce Richards and Louis Hanover in 1998, is holding tight to its wallet - and still charges full management fees.

"They're trying to have their cake and eat it too," says one angry investor. At the end of June, fewer than 20% of investors in the firm's Marathon Structured Finance Fund asked to redeem about 14% of the fund's net asset value. Under the normal course of events, this cash would be paid out in January. Instead, on November 14, Marathon sent a letter giving these investors the same choice imposed this year by numerous hedge funds: Either rescind your redemption...

ISSN: 2151-1845 / CDC10004H

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