Reuters reports: Hedge fund investors are increasingly demanding longer lock-ups for their money -- a move almost unheard of a few years ago -- as fears of big withdrawals start to outweigh the need to get out of badly-performing funds. While hedge fund performance has been poor this year -- Hedge Fund Research's HFRX Global Hedge Fund index fell 6.9 percent in September, its worst monthly performance on record, taking the year-to-date drop to 11.61 percent -- many investors are more worried about the survival of funds they invest in.
Many fear a rush for the exit door in underperforming funds could hurt those investors who are left by leaving them with less liquid assets, or could force funds to close and give long-term investors their money back at a time when asset prices are low.
In contrast, some investors feel that riding out the credit crisis over the next few years could generate attractive returns. "Some investors want lock-ups so other investors can't get out and destroy the business. We're seeing one-to-three years (lock-ups)," Roberto Cagnati, head of manager selection at Swiss-based Partners Group, told Reuters.
No comments:
Post a Comment