Bloomberg – Permal Group temporarily blocked clients from taking money out of two hedge funds that invest with NWI Management LP while NWI changes its redemption rules, according to two people familiar with the matter.
The firm, based in London, froze the $700 million Permal Fixed Income Special Opportunities Ltd. and $350 million Permal Global Opportunities Ltd. funds, said the people, who asked not to be identified because the decision wasn’t publicly disclosed. Both Permal funds reinvest with NWI.
NWI, which oversees $2.8 billion, was hit with a surge in redemptions, the people said, in part because the New York-based firm allows investors to pull their cash each month. Most hedge funds limit withdrawals to every 90 days, and NWI is now changing its policy, the people said. Hari Hariharan, who runs NWI, declined to comment.