Investment houses refuse withdrawls!!!!!!

"Satellite Halts Client Withdrawals from Three Hedge Funds: Report
By Reuters

Friday, November 28, 2008 Email this story | News Tracker | Reprints | Printable Version

NEW YORK (Reuters)—Satellite Asset Management, founded by former employees of billionaire George Soros, stopped client withdrawals from its three largest hedge funds, Bloomberg reported.
The company also eliminated more than 30 jobs, after losses reduced the firm's assets to about $4 billion this year, according to the report.

Satellite Overseas Fund Ltd., Satellite Fund II LP and Satellite Credit Opportunities Ltd. have declined as much as 35% in 2008, Bloomberg reported, citing a person with knowledge of the funds' performance.

The firm is retaining teams that trade bonds and loans and invest in companies going through events such as takeovers, Bloomberg said, citing the unnamed source.

By Ramya Dilip in Bangalore

[email protected]"

(Since the source is a paid subription site, I will list the site as well as the site I actually found post on, so 2 sources)
Hedgeworld
GLP


"Fortress Suspends Redemptions for Now

By Reuters

Wednesday, December 03, 2008 Email this story | News Tracker | Reprints | Printable Version

BOSTON (Reuters)—Fortress Investment Group LLC told investors on Wednesday [Dec. 3] that they won't be able to get their money back for a while, becoming the latest hedge fund firm to suspend redemptions as investors try to exit.
Fortress, one of only a small number of publicly traded hedge fund and private equity groups, said its board of directors unanimously agreed to temporarily suspend pending redemptions after investors asked to pull out roughly $3.51 billion by year's end from its Drawbridge funds.

The news helped push the company's share price down 25.6% to $1.86 per share in afternoon dealings. They fell as low as $1.71 at one point.

"This action will result in amounts requested for redemption with respect to the Nov. 30, 2008, and Dec. 31, 2008, redemption dates remaining part of the Company's AUM (assets under management) for so long as the suspension remains in effect," the company said in a regulatory filing.
Fortress estimates that the Drawbridge Global Macro Master Fund Ltd. and its three feeder funds will have approximately $3.65 billion in assets under management on Jan. 1. At the end of the third quarter, Fortress said it managed $34.3 billion in assets.

Fortress founder and Chief Executive Officer Wes Edens had braced for redemptions and told investors on a conference call last month that the company, like the rest of the industry, would likely face more of these requests in the "grim" market environment.

Suspending redemptions was once a sign that a fund was about to fail, but it is now a much more accepted tool to safeguard capital—for a while at least, industry lawyers said. They added that managers are no longer ashamed to say they aren't letting investors out just yet.

Late last week Tudor Investment Corp. 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.

The hedge fund industry now manages roughly $1.5 trillion, having shriveled 9% in October when investors withdrew a record $40 billion. "

GLP


"Man's Della Casa Says One-Fifth of HFs May Fail

By Reuters

Wednesday, December 03, 2008 Email this story | News Tracker | Reprints | Printable Version

FRANKFURT, Germany (Reuters)—Up to 20% of managers in the $1.6 trillion hedge fund industry are at risk of going out of business in the next two years, a Man Group Plc strategist said on Wednesday [Dec. 3].
Thomas Della Casa, head of the research, analysis and strategy group at Man Investments, told a briefing in Frankfurt one in 10 hedge funds tended to fold after a few years even in favorable market conditions.

"The number will go down from 10,000. In the next two years 2,000 (hedge funds) could perhaps disappear," he said.

Overall, hedge funds are on track for only their third-ever year of losses, based on industry data going back 18 years, Della Casa noted. Hedge funds last failed to earn money for their investors in 1998 and before that in 1994.

"Assets under management will remain relatively unchanged, we don't expect net inflows," Mr. Della Casa said about prospects for 2009. Many investors are likely to go on shunning risky assets, preferring to hoard cash for quite some time, he said. "Every dollar parked on the sidelines and held as cash usually stays away from markets for about 12 months. We don't expect this liquidity to return any time soon.

"The beginning of 2009 will be hard. We will still see liquidations and fire sales," Mr. Della Casa said, referring to hedge funds and their assets, such as corporate bonds.

Yet such conditions could create buying opportunities, he said.

Credit was trading at 67 cents to 68 cents on the dollar compared with a "normal" recovery value of 70 cents, he said, adding Man Group saw "enormous opportunities here."

Man Group sees the global economic recession lasting at least between four and six quarters. With history as a yardstick, equity markets tend to bottom out half-way through a recession, Mr. Della Casa said.

Globally, investors withdrew $40 billion from hedge funds in October, leaving $1.56 trillion in assets under management, Chicago-based tracking firm Hedge Fund Research Inc. said on Nov. 20 Previous Reuters Story.

October's redemptions exceeded the third quarter's net outflow of $31 billion as retail and institutional investors alike fled to the safety of cash after the collapse of U.S. investment bank Lehman Brothers Holdings Inc.

London-based Man Group, the world's largest listed hedge fund group, said recently its assets under management dwindled to $61 billion by early November from $67.6 billion at the end of September, mainly due to the strengthening of the U.S. dollar. "

GLP


Up to 1.6 trillion in hedge funds may fail????

NOT!! Allowing people to take "THEIR" money out of these failing hedge funds?

Are hedge funds the next major collapse?

Will the collapsing hedge funds effect more than just the US?

Will this be the death toll for more banks and banking institutions?

Will there be anywhere safe to put your money????......SERIOUSLY!!!!!!!

"Cracks are spreading throughout the Fortress Investment Group, once a leading player in the worlds of hedge funds and leveraged buyouts. On Wednesday, Fortress’s shares fell 25 percent to $1.87, a new low, after the company temporarily suspended withdrawals from its largest hedge fund. Investors had asked to withdraw $3.51 billion from the money-losing fund, Drawbridge Global Macro"
NewYork Times/Business

This is not looking good.

As if people have not lost enough of their saving's, now peoples retirement funds (401K and such are or invest in hedge funds).

As people lose everything they working their whole life for, they will not be pleased. Truly broke people have nothing to lose, so civil disturbances/unrest are very likely to occur, imo.

"The once-celebrated company has lost 89 percent of its market value over the last year as hedge funds and private equity, once lucrative businesses that helped define an era of unrivaled"
NewYork Times/business

Lost "89%" of its value from 6 months ago.

It seems to me they may be refusing withdrawals to try and prevent the complete collapse of the funds.

As I see it, here is the situation.
People want out of the failing funds, smart move, before they run to 0.

The fund companies realize that this would cause a run on the funds and they would collapse, this would be the basis of refusing to allow withdrawals.

Personally, I would want my money out of the funds.
If the funds are going to collapse, they can do so without "MONEY"!!!!!!!!!!!!!!

Well this do not surprise me a bit because my husband received a letter about one month ago from his investment firm and 401k holders that he may not be able to withdraw funds without a very lengthy period of waiting time and with a notice in advance.

And occurs they have also black out months.

reply to post by mrmonsoon



Thank you for this information, excellent post and I have now emailed out the info to many people.

I have been trying to keep very little funds in the bank - due to one day - figuring they will just close it up - without warning - even though it is suppose to be FDIC insured.

But - the U.S. govt. can not actually cover the insured deposits on hand - so... I would rather be safe than sorry.

OH yea - I also just took out my IRA and other investments - and liquidated them to cash. Even though I will pay a penalty - I perfer actually having the money and paying a penalty - than losing it ALL!


[edit on 5-12-2008 by questioningall]

BTW............

At the risk of going off topic, we also need to start watching commercial real estate
.

This "WILL" be the nest crash after the hedge funds. Will it ever end? Will we just go from failing market to failing market??????