Bloomberg reports the company's board of directors unanimously voted to prohibit withdrawals in the near term as investor requested to pull out nearly $3.51 billion by year's end from its Drawbridge Global Macro hedge fund. Hedge fund withdrawals is a growing trend following the sharp decline in the markets and valuations in assets around the world. While it was once seen as heresy for a hedge fund to block withdrawals, the prohibition is now becoming standard practice to insure hedge funds' viability in declining markets.
Reuters reported, for example, that Tudor Investment Corp. last week told investors in its $10 billion
BVI Global fund that they would not be able to exit in the next months
as managers restructure the fund. - Gerald Magpily
See Bloomberg article
Publicly traded hedge fund Fortress Investment Group LLC blocked all investors from withdrawing money, causing a decline in the stock by as much as 25% on Wednesday.
