Larry Summers’ Hedge Fund Freezes Redemptions
Wednesday, December 10, 2008 12:26Larry Summers’ company, D.E. Shaw, announced this week that it has frozen client withdrawals.
Summers, who was tapped to lead President Obama’s White House National Economic Council, served as a managing director to the hedge fund up until the announcement of his cabinet appointment.
D.E. Shaw Co, is a New York based hedge fund with a reputation surrounded in secrecy. The firm has made billions buying bankrupt companies assets for penny’s on the dollar. D.E. Shaw joins the list of over 80 hedge funds who have restricted client’s from accessing their money this year.
The problems began as D.E. Shaw’s Oculus fund received redemption requests for more than 8 percent of the funds assets. Redemptions of the proportion would have caused the fund manager to liquidate large positions, which they were not willing to do.
I wonder if the firm is still charging clients a management fee on the money which they have no access?
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Daniel says:
December 10th, 2008 at 6:00 pm
I wonder if they don’t want to liquide the positions because there isn’t a market for them? lol
transPhat says:
December 10th, 2008 at 7:42 pm
he can now do for america what he has done for his investors…. how long before america’s “hedge fund” (the stock market) closes its doors to redemptions? sell now girls while you have a chance cause this abomination is terminal.
Joseph says:
December 10th, 2008 at 7:59 pm
Larry Summers needs hung from a lamp post.
Westcoaster says:
December 11th, 2008 at 11:10 pm
Larry Summers has done more for our economy then any recent man. Please read Greenspan’s book. Greenspan and the Republicans won over the objections of Mr. Summers and Rubin and Reid and Clinton to re build the national debt. Alan was worried about it getting too low.
More recently Larry said the wisest thing on CSPAN. We need to get out in front of the oil curve. I believe he and Paulson are right on with now getting in front of the yeild curve. Look at it, its no longer inverted. Soon home mort to 4.5. That is the first action of this banking recapitalization that is going to help current home owners. It will spur a wave of refinancing bringing fees into banks and saving all homeowners some 1000’s per month. That is a real tax cut. Also this will fuck with the current stingy bond market. This market is demanding 13% on AAA CMBS paper. Stupid rich bondholders. Time to fuck with them by giving them back their capital. In the next 5 months we will re-finance much of our debt at lower rates and then the market will need to find somewhere productive to put their money.
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December 14th, 2008 at 10:36 am
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Hedge Fund Manager Sued by SEC For $16 Million Fraud | Charting Stocks says:
February 20th, 2009 at 12:09 pm
[...] frozen withdrawals. DE Shaw, a NY Based hedge fund which claims to manage $40 billion in capital, recently froze their clients assets after the company was met with 8% of its clients asking for their money back. One has to wonder if [...]