http://www.zerohedge.com/news/2016-03-29/prominent-hedge-fund-luxor-capital-warns-redeeming-investors-will-be-gated-after-sha
About a decade ago, Christian Leone's Luxor Capital was one of the biggest brand names in the industry, and alongside Harbinger and DB Zwirn, every trader and analyst on Wall Street wanted to work there. Since then things have changed. According to Reuters, Luxor, which had $3.8 billion under management at last check (a steep drop from the ~$10 billion it ran several years ago) "has been losing money for months" and on Monday it surprised investors when it announced it would "not be returning exiting investors cash in full, keeping a portion locked up until some illiquid investments can be sold."
Call it the latest hedge fund "gate", only unlike some prominent debt focused names, this one is only partial: "instead of returning all exiting clients' assets in cash, investors will receive 88 percent of their money back while 12 percent of the investments will be held in a so-called special purpose vehicle, Luxor's founder, Christian Leone, wrote in a letter."
The announcement comes before a critical March 31 redemption deadline and aims to treat all investors "fairly," the letter said.
"For those investors in the Fund that have submitted withdrawal requests for March 31, 2016 and for subsequent withdrawal dates, we will transfer a pro rata share of the applicable assets into a special purpose vehicle (SPV)," Leone wrote.
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