Hedge fund investors' medium-term memory

We noted recently that hedge funds are having an easier time at fund raising than private equity funds. In fact, hedge funds took in $54 billion in new investments in August, September, October and November before a slight drop off of about $4 billion in December. But no one should assume that investors have forgotten about 2008. And no one should assume that investors aren't tuned into the fact that despite the big gain in 2009, funds still were trounced by the S&P 500.

So not all firms are participating in the rush into invest. One executive tells Business Week he won't invest in any hedge fund that imposed restrictions on withdrawals. Hedge fund firms "that allowed withdrawals during the downturn have become so popular that they're turning money away." 

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- here's the article

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