Wednesday, 20 August 2014
Last updated 11 hours ago
Mar 29 2010 | 11:31am ET
Moving to reassure investors, New York-based hedge fund Moab Partners is foreswearing redemption gates and side-pockets, even though the firm has never imposed them.
The event-driven fund, headed by a pair of former Perry Capital managers, previously included a provision that allowed both gating and moving illiquid assets into side-pockets to avoid forced selling of distressed assets. Andrew Stotland, director of business development at Moab, told HFMWeek that both “were originally introduced to protect the limited partners.”
“Unfortunately, in 2008, many of our peers abused these investor protections,” he explained. “The investor community fought back and rightly so. We never adopted any of these practices, but we wanted to go one step further.”
Removing the gate and side-pocket provisions—in line with broader industry moves towards greater liquidity and transparency—is designed to “remove any doubt from investors’ minds and show them that our interests as general partners are truly aligned with theirs as limited partners,” Stotland said.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note