Redemptions

Investors decide to cash it in

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Savvy managers are well-positioned, while the naïve lose their illusions

By Josh Friedlander

Cash is king. That's the message in the markets today, and one that managers are hearing clearly from investors who have decided to take their money, creating a run on the hedge fund bank. Billions of dollars had been pulled out even before the September redemption flurry, from such hedge funds as Harbinger Capital Partners, Highland Capital Management and HBK Capital Management, but more big names have begun to feel the heat. Citadel Investment Group, BP Capital Management,