NEW YORK, NEW YORK (August 2009) - Performance considerations aside, the defining feature of the hedge fund industry over the past 18 months has been the ubiquity of fund managers placing redemption limits, either in the form of "gates" or outright suspensions, on investors' redemption rights. Aside from headline-grabbing frauds and other landmines, which are, relatively speaking, isolated incidents in a trillion dollar industry, probably no other issue has raised as much rancor between fund managers and their investors as imposing limits on the ability of investors to obtain liquidity for their holdings in hedge funds.
Hedge fund managers will be challenged to attract substantial capital investment into their funds, while retaining systems which can potentially force legacy investors into permanently precarious solutions.
To view the full white paper, please see FIRST(TM) ViewPoint - Keys to Unlocking Hedge Fund Gates: Market-based liquidity and redemption solutions to resolve conflicts between
hedge fund investors and managers.