Baltic, London Hedge Funds Halt Redemptions

Nov 5 2008 | 12:21pm ET

The rash of hedge funds halting redemptions continues as global markets spiral down with two more freezing their assets.

GILD Arbitrage, the first registered Baltic hedge fund, will halt redemptions and subscriptions until May 5, citing “market turbulence.'”
The fund, managed by the Tallinn, Estonia-based investment bank GILD Bankers, took the step because of “the risk of treating some investors unfairly” and because it didn't want “to act too hastily in realizing the potential of our fund investments,” Bloomberg News reports, citing Tonno Vaehk, who oversees the fund, in an e- mailed statement.

The fund, which focuses on arbitrage, has 300 investors and total assets of about US$127 million.

Elsewhere, Autonomy Capital Research, a US$1.7 billion hedge fund run by former Lehman Brothers Holdings trader Robert Gibbins, halted withdrawals from its flagship global macro fund after losses this year.

The US$1.2 billion Autonomy Capital Fund dropped 40% this year through October, according to a Nov. 3 letter sent to investors. “Redemptions at this time could be materially adverse to the best interests of the fund,” wrote Gibbins.

Most of the pending redemption requests will be paid in the second quarter of 2009, Autonomy said. The firm will present a restructuring plan in the coming weeks.

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