(Wall Street Journal) Hedge-fund firms York Capital Management and Southpaw Asset Management are barring clients from getting back all of the money they have requested for year-end, a sign of the pressure that investors in distressed assets are facing.
Funds at both firms faced significant client redemptions, according to people familiar with the matter. In response, the funds have erected so-called “gates,” or barriers that limit withdrawals of money from a fund. Gates are a controversial tool used by hedge funds during the financial crisis, but have been deployed rarely since then.
