Are Hedge Funds just as illiquid as real estate?
I encourage you to read the article published by Wall Street Journal last April 10th, 2008 under the headline “Hedge Funds make it hard to Say Goodbye”
The article starts with the following comments:
“If you thought getting into a hedge fund was tough, try getting out of one.
With the markets sputtering, some high-profile hedge funds are rejecting withdrawal requests, with some telling investors that it could be years before they will see all their cash again. And it isn’t just big institutions and the wealthy that are getting rebuffed. Some smaller investors who took advantage of lower minimum investments by putting their cash into so-called funds of funds, which invest in numerous hedge funds, are also getting blocked.”
So one question investors are asking themselves today is if they are better off taking advantage of lower real estate prices and therefore should consider increasing their real estate asset allocation – to use a common Wall Street term – rather than investing monies on truly sophisticated asset classes that seem to offer much less liquidity than advertised.
I encourage you to consult with your Financial Advisor on the merits of the WSJ article.
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If you have any questions or comments, please send me an e-mail to: michael.schnabel@mac.com or call me at 305.450.0036
