According to the WSJ, the sub-prime woes of some hedge funds have caused them to stop investors from withdrawing funds. Galena Street Fund announced it was suspending redemptions until it can liquidate assets. United Capital Assets Management has stopped redemptions in four of its funds. All of the funds are apparently heavily invested in subprime mortgages.
The WSJ reports that more hedge fund troubles are expected in coming weeks, as second quarter performance reports are sent to investors.
Time to review those hedge fund holdings and subscription agreements...
