Saturday, 28 March 2015
Last updated 15 hours ago
Oct 31 2012 | 11:42am ET
A fund of hedge funds run by Morgan Creek Capital Management founder Mark Yusko has imposed withdrawal restrictions after investors yanked nearly a quarter of its assets.
The Endowment Fund, which Yusko set up in 2003—before he left the University of North Carolina at Chapel Hill's endowment—with Salient Partners, told clients on Friday that it would gate redemptions. Investors will now be allowed to withdraw only a limited amount of money each quarter from the $3.3 billion fund, which has seen more than $1 billion in redemptions this year.
In a letter to investors, Endowment Fund said the temporary move would reduce the amount investors can withdraw each quarter to 5% of assets, half of the previous level.
While many hedge funds and funds of funds imposed gates during the financial crisis, the Endowment Fund's move is among the first to come after that crisis, according to The New York Times.
The Endowment Fund invests with some of the biggest names in the hedge fund industry, including Eton Park Capital Management, Harbinger Capital Partners and Paulson & Co. Once a selling point, that access hasn't helped returns much lately, with the fund losing 4.1% last year. What's more, some 35% of the fund's assets are in illiquid investments; Endowment Fund wrote that "further significant repurchases at this time would be incompatible with managing the fund in accordance with its stated objectives."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…