Cornell Daily Sun – In the midst of the country’s economic recession, the Johnson Graduate School of Management’s Cayuga Fund, a hedge fund run by faculty and students, reported a 0.42 percent gain for the 2008 business year.

Although the fund’s investments decreased by 1.29 percent in the fourth quarter, this $12 million hedge fund, finished the year ahead, especially relative to the performance of its benchmarks. Indexes like Hedge Fund Research Equity Hedge Index and the Hedge Fund Research Equity Market Neutral Index reported 25.45 percent and 1.16 percent losses, respectively, in 2008.

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Reuters UK – Hedge fund investors may face an expensive tug-of-war with managers, according to a new research paper that suggests they could lose as much as 15 percent of their initial investments should they be unable to exit when they want.

Hedge fund investors have rarely been allowed to pull their cash out immediately, but now they are sometimes being told that they may not be able to pull it out at all as the industry faces its worst-ever returns.

Dozens of prominent hedge funds, including Fortress Investment Group and Tudor Investment, have recently restricted redemptions in some of their portfolios.

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