Fund launches & closures Hedge Funds

Satellite starts to liquidate, but could take two years

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Following a wave of redemption requests resulting in its largest drawdown ever, the now-$4 billion Satellite Asset Management has begun a gradual liquidation of its flagship Satellite Credit Opportunities Fund. Unlike many other firms that are rapidly liquidating assets, however, Satellite's efforts to wind down its fund could take up to two and a half years, and the firm still hopes it can ultimately salvage the fund.

"Unusual and unanticipated market forces, coupled with related extreme illiquidity, have caused a significant lengthening in the investment time horizon needed to reasonably assure a successful harvesting of the fund's investment,"