Ron Guttfleish's value-oriented Elm Ridge Capital Management has apparently already activated a gate that was set up earlier this year to control redemptions in any given quarter.
The gate provision introduced to investors last January called for a relatively tight 10% limit on total fund redemptions at any quarterly redemption date. As described to investors, the provision guaranteed that investors would receive all of their money back within a year.
Recently, investors requesting redemptions were told they would be subject to the gate, suggesting that Elm Ridge had received redemption requests for 10% or more of its capital. The