Some hedge fund customers are getting their money back by selling their shares on the secondary market, Dow Jones reports. Hedge funds see this as an alternative to locking up customers money through so-called gates.
With lock-up periods lasting several years in some cases, the secondary market for trading hedge fund shares developed a number of years ago. But those trades were few and far between, until recently. And with the markets so poor, some purchasers are getting hedge funds to waive their fees until their numbers are back in the black.