Hedge Funds

Multiyear lockups on the rise at a number of the biggest funds


As many had predicted, the ranks of major hedge funds requiring two-year lockups on new capital is growing rapidly as the February 2005 deadline for registration with the U.S. Securities and Exchange Commission approaches.

Last month, Mark Kingdon's Kingdon Capital Management notified its investors that in the new year, it would take new allocations only on the basis that the funds be locked up for two years, availing itself of a loophole in the new SEC rules. That loophole allows funds to avoid registration if they stop taking in fresh capital or lock up new funds for two