Please go away – we’re shut for a year

Yet another story about a fund locking the door on investors that might have wished to redeem their investments

Hedge fund firm bars withdrawals by investors
Thu, 20 Sep 2007, 07:11
International Herald Tribune/Bloomberg

Absolute Capital Management Holdings, whose co-founder, Florian Homm, abruptly quit Tuesday, on Wednesday stopped investors from withdrawing money from eight hedge funds that managed USD2.1 billion. The firm told investors that they should not expect to be able to get at their money for a year while it restructures the funds. Seven of the funds hold over-the-counter US stocks that cannot be sold at the prices that the firm has on its books, affecting as much as USD530 million of assets.

Particularly entertaining is the comment that the firm has stock that cannot be sold at prices it is valuing them at – hmmm, perhaps they don’t understand the concept of marking the fund to market, clearly prefering to mark to model, in this case THEIRS!

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