Hedge Funds

Blue Mountain halts redemptions in credit flagship

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Although showing only a small loss for the year, Blue Mountain Capital Management temporarily halted redemptions this week at its flagship fund and proposed a plan that will offer incentives to those who stay and pain for those who elect to leave.

Under the plan, those who redeem shares will have to bear the full cost of selling assets in today’s distressed market, while those who stay will get a break on fees in exchange for locking up funds for up to two years.

In a letter to investors, Blue Mountain chief executive Andrew Feldstein said the firm had