Redemption Gates: Not looking like such a bad idea after all
Oct 8th, 2008 | Filed under: Hedge Fund Industry Trends, Today's PostThe numbers are in and it appears that hedge funds lost about 5% last month (see sidebar of this web page for full listing of hedge fund indices). Bad, but looking relatively good with every passing day on global equity markets. Excluding the long-biased energy and emerging HFR sub-indices, the number is closer to -4%.
In a recent note to clients last week, research firm Oxford Analytica expressed surprise at the apparent resilience of the hedge fund industry:
“Whereas banking sector difficulties have provoked a host of policy responses…no hedge fund problem has yet necessitated a similar systemic response. The apparent resilience of the sector is particularly striking given that recent estimates suggest that the 2 trillion dollar hedge fund industry accounts for approximately 30% of US equity and bond trades…”
A “Run” on Hedge Funds?
But at least one economist says this is just the calm before the redemption storm. Nouriel Roubini wrote in the FT last week that:
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
Related Posts
- Stigma of redemption gates fading fast
- New study on redemption gates requires a closer look
- San Francisco Day Two: President Lo’s cabinet, redemption gates and weird stuff in the Canadian water supply
- “Subscription Gates”: Why some hedge funds (used to) turn their backs on new money
- Newsreel: “Subscription gates”, Darwin and free trade in hedge funds
