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.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.