Posted on 10/02/2008 4:47:17 PM PDT by TigerLikesRooster
Millions held in hedge funds lockdown
By James Mackintosh
Published: October 1 2008 23:43 | Last updated: October 1 2008 23:43
An increasing number of hedge funds are telling customers they cannot have their money back as rising withdrawals and exposure to Lehman Brothers hit the industry.
The inability to access money has already had a knock-on effect: Absolute Return Partners’ Millennium Wave, a small fund of hedge funds, has had to tell its customers they cannot have their money back until it can retrieve it from the funds in which it invests.
Luqman Arnold’s Olivant is also struggling to access its shares in UBS, which are stuck at Lehman’s London arm, meaning it will not be able to vote them until they are returned by Lehman administrators.
This week was the final date for clients to put in re-demption requests for many funds in order to get their money back by the end of the year, and the industry is worried about the scale of withdrawals.
In particular, funds of hedge funds servicing wealthy individuals have been bombarded with re-quests for billions of dollars of withdrawals
(Excerpt) Read more at ft.com ...
Ping!
They must not have told their investors hedge funds are high risk.
FDIC insured accounts are for the little people.
I think we see why the Dems were so desperate to have the bailout.
Sounds like these “hedge” funds forgot to hedge.
We’re gonna have to print a hell of a lot more money to cover all this, I’m thinking.
Wonder how long before this trickles down to 401K’s and IRA’s? I swear, I have been considering closing out my 401 and IRA and taking the tax and penalty hit just to have the cash in hand.
How much of Paulson’s $700B will end up in the Cayman Islands?
RISKY INVESTMENTS!
I was just reading about some dude that has $450 million that he can’t access....just sold his shipping company
50 cents on the dollar?
Dunno if I'd do that ... converting it to cash holdings for a while? Heck yeah.
The irony is that many hedge funds exist purely to mitigate risk, which is not possible inside a mutual fund thanks to Uncle Sucker’s regulations.
Hedge funds with very low risk profiles were caught up in the LBIE filing along with those with very high risk profiles.
jas3
That is what Paulson said, and I believe him.
This is the real BS behind the Bailout... Hedge funds are collapsing and all those really really rich folks who are going to lose their shirts aren’t going to go down without getting congress to bail them out... not to mention that many states moved their retirment pension funds etc into Hedge Funds as well... So they won’t let them go down.
THat’s what this bailout is about folks, it ain’t about the average joe at all.
Doesn’t exactly fit on this thread, but is financial in nature and not important enough for a new thread:
WaMu assets are being rated a couple billion dollars downward.
The reason???
WaMu held a couple billion dollars of it’s own stock.
I thought that was illegal?
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