Hedge funds that still have redemption restrictions are starting to get an earful from all sides. The decision by some of the usual suspects such as Citadel and Harbinger to continue to maintain total or partial redemption restrictions in certain funds has even drawn the ire of fellow managers.
"This is just wrong," wrote Paul Touradji, of Touradji Capital Management LP, in his 2008 year-end letter. "It's not good for our industry and it's hurtful to our partners who will have less money to invest because of other managers' losses, poor practices and the domino effect this sets off."
But investors who are fuming that their money is still tied up should take some minor comfort. At least they haven't been completely dehumanized by having the legendary Golden Tree payment-in-toxic-sludge-kind redemption program thrown in their face.
Withdrawal Limits Remain Despite Hedge Funds' Rise [WSJ]