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Manny Friedman Suspends Redemptions In Credit Fund Citing Frozen, ‘Nonfunctioning’ Markets
Investors in Manny Friedman's $2.5 billion Debt Opportunities Fund won't be able to avail themselves of the "opportunity" to withdraw their money for the foreseeable future.
That's according to a letter seen and cited by the Wall Street Journal.
"We are currently experiencing unprecedented volatility and dysfunction in the credit markets", Friedman and co-Chief Executive Neal Wilson, told investors. "Market participants fear extreme and irreversible damage as the uncertainty emanating from the
“hedge funds rarely suspend investor redemptions because it is unpopular with clients”
That is the best thing I’ve read in a week.
Non-agency mortgage REITS are being destroyed by margin calls. Being forced to sell high quality mortgage holdings at rock bottom prices due to illiquidity of the credit markets. Same thing. Any of his cash rich hedge fund peers are making a killing on these underpriced assets.