Live from GAIM Cayman: HF operations in the spotlight
Apr 27th, 2009 | Filed under: Today's Post
Several hundred hedge fund CEOs, COOs and operations personnel met today for day one of GAIM Ops, a three-day conference dedicated to hedge fund operational issues. What follows is a description of several of today’s sessions reported directly from the conference floor of this timely event.
—–
4:30pm Eastern Time
Addy on Redemption Gates
Chris Addy, CEO of Montreal-based consultancy Castle Hall Alternatives and lead author behind the blog “Risk Without Reward” has been keeping a close eye on redemption gates since the first ones began to shut last year.
He is of two minds regarding gates and all-out redemption suspensions. He says that on the one hand, hedge funds have just navigated through a “cataclysmic” financial event that was not its own making (making gates appropriate). On the other hand, many hedge funds can be blamed for “over-selling” their liquidity (making gates less justifiable). The root of the problem faced by many funds was an assumption that assets would not go down.
This was compounded by the complacency with which many investors approach offering documents – resulting in the playing field being tilted in the manager’s favour. To add insult to injury, he says, the legal fees incurred in the creation of those offering documents are usually charged to the fund itself. So although he says he doesn’t like to use the analogy, Addy says it’s like the investor is being “charged for the gun used to shoot themselves in the foot.” More…
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
Related Posts
- Cayman Islands: Liquidity as far as the eye can see (except in some hedge funds)
- Once a cure for insomnia, hedge fund operations now keeping everyone awake at night
- Day 2 from GAIM Ops: Questions and conundrums for policy makers and hedge fund managers
- Legal warning over too safe LDI
- GAIM Ops Wire: Sunny days for the due diligence crowd
