The next 30 days are lining up to be difficult for hedge funds. The results of September and October will soon be glaring sores on the upper lips of a number of funds looking for a date via the “capital raise” speed dating end-of-year event. That, on top of dramatic dislocations in markets like the Volkswagen spanking, backwards credit markets and the like, promise to freeze up any number of managers. To wit:
Deephaven Capital Management LLC, the hedge-fund unit of stockbroker Knight Capital Group Inc., froze a $1.6 billion fund after investors asked to get back 30 percent of their money.
Withdrawals from the Deephaven Global Multistrategy Fund were suspended so managers wouldn’t be forced to sell assets in falling stock and debt markets, the Minnetonka, Minnesota-based firm said yesterday in a letter to investors. Lenders and trading partners also imposed stricter financing requirements, according to the letter.
They aren’t the first. They won’t be the last.
You can add:
Basso Capital, which reportedly postponed redemptions recently. Ore Hill Partners put certain restrictions back in August according to Reuters.
So, we are starting a new feature here at Dealbreaker. “Bring out your dead.” We know you know where the bodies are. (Even the ones that aren’t quite dead yet). Drop us a line. Tips at dealbreaker dot com is your path to unrecognized and unappreciated journalistic glory.
Deephaven Freezes Multistrategy Hedge Fund to Avoid Asset Sales [Bloomberg]
Color, after the jump.
THAT’s color? lazy…
Graham Capital Management
Dying
Beardstown Ladies Club.
who is paying for the losses racked up by the auditors as they unwind lehman’s trades?
Bloomberg:
The cost of liquidating Lehman Brothers Holdings Inc. may swell by more than $200 million as administrators recruit experts to help sell assets and close out trades.
$200mm just for salary costs?! what about the losses made by waiting to unwind oil or vw?
Any post that can use this clip deserves accolades.
Ez
Barron’s ranked Rohit Sehgal as the second smartest hedge fund manager. Now, not so much. Only thing up at Dynamic Power Hedge Fund are the redemptions.
That guy at the end of the video sounded like Ken Griffin
Hey dudez, theres nothing wrong with hedge funds k? I’m still a baller, what you’re laid off? Suckz to be you! Timmaaay Capital is up 4000% this year. Hellz no, that shit is not happening to me.
- Tim Sykes
Timmaaay Capital earns money by trading anal favours for cash. Timmaaay, the sole producer of Timmaaay Capital charges $20 for a 30 min. session of anal destruction with a guaranteed happy ending.
Timmaaay Capital started the year with $10 and currently is up 4000%. How many hours of anal humiliation has Timmaaay had to endure?
is global alpha really shutting down? citadel?
@9 10 hours?
@11 congratulations that is the right answer! you may have what it takes to become Timmaaay Capital’s 2nd producer. Mind you, working hours are from 10pm-5am and you’ll have to find your own streetcorner and bring a pair of assless chaps. It’s a straight-up “you eat what you kill” culture there.
follow up question: Timmaaay Capital doesn’t distribute any capital eoy. In order to replicate this years stellar 4000% return, how many hours does Timmaaay need to get cornholed in ’09?
Scale’s a bitch when you’re a pennystock.
There must be some way to work in the witch scene sometime today.
I’m going to check on you, mister Raymond K. Hessel. In three months, and then in six months, and then in a year, and if you aren’t back in school on your way to being a veterinarian, you will be dead.
GLG IS FUCKED!