It's getting ugly out in the hedge fund world, as more funds are forced to limit redemptions. The ostensible goal may be to limit what would amount to a run on hedge funds. Clearly, we've seen a big move to the exits. Reuters reports that between July and September, investors yanked a record $31 billion, as the industry's assets under management sank 11 percent. The big worry now is a November 15 deadline to redeem money. Some funds are trying to ease the pain by invoking more investor-friendly high water marks and by tinkering with fees. Hopefully, redemptions will not explode into all-out selling or litigation, but we're in uncharted waters, to some extent.

For more:
- here's the Reuters article

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