Hedge Fund Gemini Pushes Fund Split Over Side Pockets

May 5 2010 | 10:13am ET

With side-pockets getting some unwanted regulatory attention, one hedge fund says it has struck upon a better way of dealing with illiquid investments.

Gemini Strategies in 2008 split its flagship fund into a continuing fund and a redeeming fund, firm chief Steven Winters tells PIPEwire. Winters said that the “simple and fair” solution has allowed him to return some 80% of the assets in the winding-down fund to redeeming investors—earning them an 18% return in the process—while managing the continuing fund to a 26% return last year.

“We made no new investments for the redeeming investors and have been pushing cash to them as quickly as possible,” he said. “This segregation allowed us to meet the competing interests of both types of investors: redeeming and non-redeeming.”

Winters said he expects to get redeeming investors the rest of their money back by the end of the year.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR