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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (161608)	11/2/2008 7:09:25 PM
From: neolib	Read Replies (2) \| Respond to of 306849

More to the point, why is ANY of the help going to help someone holding an investment property? Let them sell their investment property first. If they have no equity in it, then Jingle Mail that one first and then talk about the lived in residence.

To: Les H who wrote (161608)	11/2/2008 8:13:47 PM
From: Les H	Respond to of 306849

Hedge funds try to stop investors from leaving By Svea Herbst-Bayliss Reuters Published: October 31, 2008 iht.com BOSTON: Dozens of hedge funds have told investors that they cannot get their money back right now as managers try to limit a wave of redemptions to safeguard all their clients' investments - as well as their own futures. Only a few months ago, hundreds of the world's estimated 9,000 hedge fund managers made it tough for wealthy investors to put money into their funds by requiring minimum investments of $1 million or more and charging heavy fees. Now managers are making it hard for investors to get out. "Everyone is looking at their gate provisions," or mechanisms that limit redemptions, "and what rights they have to close their gates," said Timothy Mungovan, a partner who advises hedge funds at the law firm Nixon Peabody. On Thursday, Knight Capital Group's Deephaven Capital Management halted redemptions at two of its hedge funds. Recently, the hedge fund firm Basso Capital told investors that it was postponing redemptions. The hedge fund firm Ore Hill Partners imposed a gate in late August. Before that, Drake Capital Management and Pardus Capital Management began restricting clients' departures. Ellington Capital Management stopped allowing investors to exit one of its portfolios last year. Blocking investors' exits, even if only briefly, was once a highly unusual move that often signaled that a hedge fund was on the verge of collapse, managers and investors acknowledged. That is changing now as ever more managers and investors engage in a tug of war over who can receive money right now. Managers argue that if they had to return investors' money exactly when investors demanded funds would have to unload securities at fire-sale prices and many clients who were not looking to get out would be hurt by those moves. Already, hedge funds have been blamed for accelerating the stock market's tumble by dumping shares to get liquidity. "Restricting redemptions allows the managers to withhold selling into unfavorable markets," said Michael Tannenbaum, a partner at the law firm Tannenbaum Helpern Syracuse and Hirschtritt, explaining that panic selling in these markets can be "harmful to both sides: the investor and the redeemer." But investors are not wholly convinced by this argument. Many are still asking to get their money back now. Spooked by hedge funds' worst-ever returns - the average fund has lost 20 percent this year - pension funds and wealthy individuals alike are leaving hedge funds faster than ever before, lawyers and managers said. Between July and September, investors pulled out a record $31 billion, which helped shrink the industry 11 percent to $1.7 trillion. And more redemptions are expected to flood in by Nov. 15, the deadline to get money back by the end of the year, industry lawyers and investors said. "A lot of people are looking for liquidity, which is causing people to redeem investments," said Dean Junkans, the chief investment officer at Wells Fargo Private Client Services. "And hedge fund managers are looking for a variety of ways to keep the capital."