How to deal with fund liquidity issues

Author: | Published: 17 Oct 2018

When hedge funds become illiquid, what options are open to investors?

Hedge funds are typically high risk, high reward investments. However, when high risk investment strategies fail to pay off, the true liquidity of underlying assets may be revealed to not be quite as the promotor, or perhaps more importantly, the investors hoped. The 2008 financial crisis led to a surge in the number of funds facing liquidity issues. Some of these issues were down to global macro events, but many were due to unrealistic expectations of liquidity as against investment return. Since then, funds and those advising them have become much more alert to addressing liquidity issues, but these problems are by no means a thing of the past....