Friday, 25 July 2014
Last updated 24 min ago
Oct 16 2007 | 5:26am ET
Another hedge fund hit by the credit crunch has suspended redemptions, winning investor support for the limits in exchange for a cut in management fees.
London- and Boston-based Cambridge Place Investment Management has won approval from two of its five funds to halt redemptions until next September, with a 10% withdrawal penalty thereafter. Another fund’s investors are to vote on similar proposals later this month.
For its part, US$9 billion CPIM, which specializes in structured credit investments, has agreed to cut its management fee from 2% to 1.5% for a year.
The moves come after the firm’s June decision to shutter its US$900 million London-listed Caliber Global fund within a year after it was buffeted by subprime-linked losses.
The two funds where redemptions have been suspended are the Structured Credit Fund 1000, which is down more than 20% year-to-date, and the Structured Credit 500 Fund. Investors in the Structured Credit 1500 Fund are considering the measures.
As of the end of September, Cambridge Place had $9.4 billion in gross assets under management. The firm is known for specializing in asset-backed debt and related instruments, including private investments and real estate.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…