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Bring Out Your Dead

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.


Bring Out Your Dead (Hedge Funds)

Hedge fund closures are so hot right now.