Hedge Fund Liquidity
There is a near-constant debate that takes place between hedge fund managers and investors over liquidity and lock-up periods. In this video, I explain hedge fund liquidity and lock-up periods and what these things mean to hedge funds and hedge fund investors.
Video Transcript/Summary: The strategies and tips provided within this video module include:
- Liquidity is often something taken into consideration by investors that invest in hedge funds.
- With some hedge funds, you have monthly liquidity and you put in a redemption request that will be filled by the end of the month.
- Other hedge funds have long lock-up periods because they invest in assets with longer investment horizons.
- The average lock-up period for a hedge fund is 18 months.
- A lock-up period could be very strict or the fund might simply charge a fee for withdrawing your money earlier than the agreed-upon time.
- Institutional investors may be better suited for these longer-term investments.
Transcript for Hedge Fund Liquidity
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