FierceFinance- The likelihood that hedge funds would clamp down on redemptions went way in the past year; I can’t think of a better way to piss off your customers. Of course in some cases, hedge fund managers have no choice.
The rush to the exit would kill the firm. An interesting experiment of sorts seems to be going on at John Meriwether’s JWM Partners, whose two funds have been hit hard this year, according to FINalternatives. JWM’s flagship product–The Relative Value Opportunity Fund–which managed $1.2 billion at the beginning of the year, was down 31 percent in the first quarter. It’s Global Macro Fund was down 14 percent.
Curiously, the firm now offers investors the opportunity to exit early from the Global Macro Fund. It’s not clear how many will take the fund up on the offer, but perhaps it’s an olive branch of sorts for the woes with the flagship.
