When investors began lining up to redeem capital from his
Claren Road Asset Management, Brian Riano offered an unusual
response: He agreed to give them their money.
Claren Road's action comes at a time when hedge funds are
increasingly raising gates and other roadblocks to investor
redemptions as the rush to pull money out gathers momentum.
While many of the funds facing redemption runs are posting
negative returns, Claren Road is in the black. "We have