Daniel Loeb’s Third Point told its hedge-fund clients Friday that investors exiting its funds would be paid out with a mix of cash and the equivalent of an IOU for about 9% of their money, according to a letter viewed by The Wall Street Journal.
The new redemption policy highlights the frozen state of the initial public offering market, raising questions about when investors will be able to exit their private investments. It also illustrates how illiquid private investments are making up a larger portion of portfolios due to relatively stable private-market valuations and losses suffered by many funds on their public bets.
The hedge-fund firm’s new redemption policy applies to redemptions starting June 30, the letter said.
Source: https://www.wsj.com/livecoverage/stock-market-today-dow-jones-05-19-2023/card/third-point-to-pay-out-hedge-fund-redemptions-with-cash-and-ious-dpZsjY3CU2YGPFh9Hzbt?siteid=yhoof2&yptr=yahoo