Hedge fund pain: Sandelman Partners said to be barring redemptions

If you're looking to get your money out of Sandelman Partners anytime soon, you better get a cup of coffee and prepare for a long wait, like maybe a year.  Apparently the nearly $4 billion fund group run by 50 year old industry veteran Jon Sandelman has had a rash of redemption requests in their largest $3.2 billion Multi-Strategy Fund -- to the tune of 20% of assets according to the Wall Street Journal -- and he's barred the exit door, effectively halting the exodus at least for now.  The fund will undergo a restructuring.....

Investors in the $3.2 billion fund, Sandelman Partners Multi-Strategy Fund Ltd., were told last week by the firm's board that 22% of the fund will be placed in a side account to be controlled by the firm. For the remaining 78% of the fund, the investors will be given a choice of locking the money up for one year in a new Sandelman hedge fund, or having their money placed in a liquidation fund, where investments will be sold and the cash paid out over time. 

Sandelman's performance hasn't been bad, considering the rough markets. As of the end of June, Sandelman's big multi-strategy fund was down almost 5%. The firm's other fund was up 2.6%. Last year, the multi-strategy fund lost less than 2% -- but it dropped sharply in the second half, according to an investor. In 2006, the fund was up over 18%. 

The smaller Sandelman fund also is being closed and merged into the new fund, to be called Sandelman Partners Opportunity. The restructuring was reported in Absolute Return magazine.

Sandelman Restructures Hedge Fund - Wall Street Journal

Comments

[Benton]

At least he still looks great for fifty.