Wednesday, 20 August 2014
Last updated 1 hour ago
Jan 19 2012 | 1:17pm ET
While many top hedge funds have eased the lockup and redemption terms that made many infamous during the financial crisis three years ago, at least one is sticking tightly to the onerous rules it put into place when it launched more than seven years ago.
Eton Park Capital Management continues to give investors a chance to redeem only once every 27 months—if an investor misses a window, he or she must wait another 27 months. In order to do so, they must give 65 days notice, and can only pull one-third of their money any year. Those that do redeem must wait another month after the redemption date to actually get their money, Fortune magazine reports.
What's more, Eton Park still reserves the right to employ one of the most hated features of the hedge fund industry: side pockets. And it can put up to 30% of its assets in those side pockets.
That may be why the $12 billion firm saw only 5% net redemptions last year, despite break-even performance over the past three years and an 11% loss last year.
"We are redeeming as much as we can and as fast as we can," one investor, who gave Eton Park his money in 2008, told Fortune.
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