As managers suspend withdrawals and the Madoff scandal
lingers, investors say "it's time to push the ocean back"
By Michelle Celarier
When Cerberus Capital Management shifted from distressed
investing to private equity years ago, it was in the vanguard
of a new trend that many hedge funds later adopted, hoping it
would lift their flagging returns. Today Cerberus's
once-brilliant move puts it on the cutting edge of another, but
less desirable, trend. With performance off more than 20% for
the year in its hedge funds, Cerberus told investors in
December that it would invoke a little-noticed clause in its
documents that allows it to defer redemptions for up to a
Cerberus, which received requests from investors in one hedge
fund to withdraw what amounted to a total of 16.5% of its net
asset value as of November 30, is only one of dozens of hedge
funds that decided...