Wednesday, March 18, 2009

2008 Hedge Fund Liquidations Reach All Time High

According to Hedge Fund Research, that homeless person sleeping on sewer vent could easily have been a 2008 special situations portfolio manager. Of the record 1,461 hedge funds that closed in 2008, more than half or 775 shut their doors in Q4. Considering that, as Cliff Asness mentioned on CNBC this morning, hedge funds have a 0.95 correlation with the market and seeing the peculiar performance in Q1 2009 (absent the survivorship biased fund performance reporters that ignore all the funds that cease reporting on w eekly basis), the liquidation trend is not likely to cease any time. Throw in another couple hundred million in upcoming redemptions post March 31 and things are sure gonna get ugly. Sphere: Related Content
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