Looking at today alone, a few reports below from the hedge fund industry indicate that many hedge funds are suffering quite badly.  Investor redemptions are simply overwhelming the sector.  It will take some time for investors to get their partial money out, but once they do, there is a good chance that this same money will be immediately plowed into the safe-haven of precious metals. 

Regards - VHF 

Polygon in new measures on redemptions

Polygon, the London hedge fund, has introduced special measures to cope with the large number of investors who have asked to withdraw their money, reports the Daily Telegraph. The $8bn fund, which has in recent weeks been hit by redemptions, on Wednesday told investors they would not be stopped from redeeming their funds and has proposed a new system. Under the fund’s existing rules, which involve a so-called “stacked gate” system, only a certain number of Polygon investors can redeem at once. The fund is offering investors the chance to move to a new class of shares that will not have any gate, said Paddy Dear, co-founder. 

London-Based Plexus Plummets By One-Third

FINAlternatives

April 3, 2008  

Plexus Partner’s flagship hedge fund is down more than 35% this year, burned by wrong-way fixed-income arbitrage bets.The London-based firm was hurt by the so-called “basis trade” between corporate credits and their derivatives, the Financial Times reports.The US$1.4 billion fund’s trades went wrong in the face of unexpected moves in the credit market, possibly driven by other hedge funds dumping their positions.The firm has reportedly sold off hundreds of millions of dollars in convertible bonds in an effort to stave off skittish banks calling in its loans.

Russell To Close Two Funds Of Hedge Funds

FINAlternatives

April 3, 2008