Tisbury OKs Avalanche Of Redemption Requests

Mar 28 2008 | 10:58am ET

Hedge fund Tisbury Capital is poised to shrink by more than half after waiving a 10% withdrawal cap.

Investors in the US$2 billion London merger arbitrage shop have made US$1.4 billion in redemption requests. Rather than restrict or freeze redemptions, the five-year-old firm has decided to allow investors to get 85% of their money back on Tuesday—its next redemption date—in exchange for allowing it to unwind its more illiquid positions over a longer period, the Financial Times reports.

The newspaper says Tisbury hopes to continue operating with its vastly reduced asset base, possibly pursuing a sale to a larger manager. Preliminary sale talks with GLG Partners earlier this year came to nothing.

Tisbury has suffered from weak performance, and earlier this year shuttered an ill-fated U.S. expansion.

The redeeming investors’ share of some US$300 million in illiquid assets are to be put into a new share class, allowing the firm to avoid a fire sale of the holdings. While the illiquid portfolio includes credit assets, it holds very little in the way of structured credit, and is not highly levered.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Expert Says Scale Of Baillon Classic Car Find Rare

Dec 29 2014 | 3:40am ET

Forget about hedge funds, buying rare, classic cars could be called the ultimate...

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.