Hedge Funds

Sandell reorganizes Castlerigg funds, threatening a lockup but offering to cut fees


Tom Sandell’s Sandell Asset Management is the latest firm to impose a lockup on investors – without calling it that, of course. Investors in the firm’s Castlerigg Master Investments and its flagship Castlerigg International, which was down 24.23% through October, were informed last Friday that if they do not adopt a reorganization plan proposed by the firm, Sandell will suspend all redemptions and indefinitely lock up their money anyway. Those who agree to stay, however, will get a break on fees, as will any new investors.
In a November 14 letter to investors, the firm said that prolonged market