The sweep-up begins
Mon Feb 2, 2009
As managers suspend withdrawals and the Madoff scandal lingers, investors say "it's time to push the ocean back"
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...
ISSN: 2151-1845 / CDC10004H
The full contents of this article are available to active AR subscribers and trialists only.
TAKE A FREE TRIAL
To continue reading please, take a free trial, subscribe or log in to AR.
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.