The Era Of 20-20 Hindsight Lawsuits Continues

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A group of investors who were relying on the herd mentality to make their investing decisions is suing Highland Capital Management for the fact they made the wrong choice and are now at the back of the line for getting their money back. During the time Bear was being put down, a group of Highland investors (sensing all was not well in the world), asked about the volume of redemption requests from other investors. Partner Donald Salvino's response to the investors was that redemptions were "almost a nonevent". Taking his answer at face value and as the only variable to consider, the investors decided not to submit redemption requests. After the fund later closed down, Highland divided investors into two buckets for determining when people would get their money back: those that requested redemptions and those that didn't. As they wait to get their money back, the investors are now betting that, in the age of hedge fund persecution, one subjective answer will absolve them of any personal responsibility.
Investors sue Highland Capital after funds shut [Reuters]

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