Highbridge Halts Withdrawals From Asia Fund

Dec 2 2008 | 9:23am ET

JPMorgan Chase’s Highbridge Capital Management is limiting redemptions from its Asia hedge fund.

The $1.9 billion Asia Opportunities Fund is down 32% this year. Investors who made redemption requests are to get half of their money back by the end of next month, with the rest to come over the next 12 to 18 months. In the meantime, Highbridge will place the fund’s more illiquid assets into a side pocket in an effort to avoid a forced sale at distressed prices.

As part of the restructuring, Highbridge will cut the fund’s management fee from 2% to 1.5%. Asia Opportunities is managed by Carl Huttenlocher, who is no stranger to hedge fund difficulties: He was head trader at Long-Term Capital Management, which was the largest-ever hedge fund collapse when it went under 10 years ago.

Asia Opportunities is not the only Highbridge fund suffering huge redemption requests. Investors in its flagship multistrategy fund have asked to yank more than 36% of its assets, The Wall Street Journal reports.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...