Hedge Funds Under Fire (Again) For Redemption Restrictions


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]


Vikram Pandit To Get Back In The Hedge Fund Saddle Again, At Some Point

Just a question of which hedge fund he'll be riding-- his own or his former Old Lane colleague's. The buzz on Wall Street is that ousted Citigroup CEO Vikram Pandit will return to the hedge-fund world. UK hedge fund Portman Square Capital declined to comment on chatter that its founder, Sutesh Sharma, is eager to nab Pandit for his new firm. Sharma, a former money manager at Pandit’s now defunct Old Lane hedge fund, launched Portman this year with $500 million...Pandit is viewed by the hedge fund community as a rainmaker due to his ties to deep-pocketed investors. “I wouldn’t be surprised if he felt the timing was right to join an existing fund . . . or start his own fund,” said Robert Olman of hedge-fund search firm Alpha Search Advisory Partners. Thinking ahead, how much do we predict Citi will pay to acquire Portman Square (or Pandit Partners) in order to lure Big Vik back, which is kind their thing? Last time around it was $800 million so they'll probably have to offer at least $2bn. Pandit Packing For London Hedges [NYP via FINalternatives]