So the word is that BlueMountain is negotiating with investors in its Equity fund and Credit Fund to prevent a suspension of redemptions. The investors who deferred when it restructured its credit fund last year have a chance to redeem at the end of June. Yesterday was the notice day for that.
Essentially, they all want out in spite of good performance in 2009 so far (c.+6.8%). Good results no longer enough when your investors are FoFs on the brink of collapse themselves.
Could be bye, bye for the firm i.e. effective runoff. At least they still have the correlation funds.