Hedge funds that invest in the commodity market can be unstable and Red Kite Management is the latest example, according to the Wall Street Journal.The $1 billion metals-trading hedge fund has suffered loses thus far in 2007, after racking up gains last year. London-based Red Kite has now requested its investors give more notice when they withdraw from the fund.

The company asked investors to approve an amendment that would require 45 days’ notice before money can be withdrawn, according to a copy of the Jan. 31 letter from the firm. Currently, investors can redeem money at the end of each quarter with 15 days notice.

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