Redemption risk overblown

Redemption risk overblown

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Some credit hedge funds benefit from market dislocation

The closure of Citi's US$9bn Old Lane hedge fund (see Job swaps) has sparked concern that a wave of withdrawals is set to hit the sector, following disappointing performance. While some observers warn that a rise in investor redemptions could increase pressure on risk assets, others say that some credit hedge funds are in fact benefiting from such market dislocation.

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