Hedge funds are facing a second round of redemptions after several big investors hit by Bernard Madoff’s alleged $50bn fraud began liquidating portfolios, according to leading hedge fund managers. The scale of the redemptions is not as bad as the heavy withdrawals that hammered the industry in October and November, but is still creating problems for managers struggling with the hangover of last year’s withdrawal requests, they said.  Hedge funds were hit by redemptions estimated by Morgan Stanley at 20% – close to $400bn -  in the second half of 2008, with another 10-20% to come by the summer.

This entry was posted by Gwen Robinson on Monday, February 16th, 2009 at 5:07 and is filed under Capital markets, Hedge funds. Tagged with Bernard Madoff, morgan stanley. Edit this entry.