Hedge fund puts freeze on withdrawals

Date: Friday, July 11, 2008
Author: Andrew Coen, InvestmentNews

Investors in Sandelman Partners LP’s $3.2 billion multistrategy hedge fund will not be able to make withdrawals due to a restructuring of the fund, The Wall Street Journal reported.

The announcement came after 20% of stakeholders in the Sandelman Partners Multi-Strategy Master Fund Ltd. had requested withdrawals after it had demonstrated a 5% loss for the year at the end of June, according to the Journal.

Investors were informed that 22% of the fund will be placed in a side account run by the New York-based firm.

For the remaining 78%, investors will have the option to place their investment in a new Sandelman hedge fund for one year or put it into a liquidation account.

Sandelman has around $4 billion in assets under management, according to published reports.

A call to the firm was not immediately returned.