EJF Capital founder Emanuel Friedman has paused redemptions on his $2.5 Debt Opportunities hedge fund.Hedge funds have, on average, weathered the market turmoil caused by novel coronavirus relatively well — with a few types of funds producing some of their best returns in years.
Hedge-fund investors sticking with the industry meanwhile must now be cognizant of the business risk facing many managers that might lose big chunks of assets for reasons unrelated to their performance. While Friedman is not dealing with a mad rush to the door, though his fund was down 15% in March, hedge-fund investors are wary that redemptions are coming from regardless of performance — adding another concern to a long list of them.that helped institutionalize the business"This will produce a significant liquidity crunch for a lot of end investors," said Craig Bergstrom, chief investment officer of fund-of-funds Corbin Capital.
Endowments for hospitals meanwhile are going to be pushed to the limit with the additional stress placed on the healthcare system by the novel coronavirus pandemic. University endowments have been floated as a way to provide for students suddenly thrown out of housing and school.
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Source: CNBC - 🏆 12. / 72 Read more »