Large Korean Hedge Fund Halts Investor Withdrawals Amid Probe
One of South Korea’s largest hedge funds
suspended withdrawals from some funds, saying the firm has been unable to liquidate assets fast enough to meet demands from investors for their money back.
Lime Asset Management Co.,
which runs $4 billion of assets,
froze funds worth 620 billion won ($520 million), Won Jong-Jun, chief executive officer at the Seoul-based firm, said by phone.
The suspensions affect funds that invest in assets that lack liquidity, not those buying publicly-listed stocks or bonds, Won said.
South Korea’s largest hedge fund freezes $710 million as investors try to pull funds
Lime Asset Management — South Korea’s largest hedge fund —
has frozen a total of $710 million in withdrawals as investors rush to pull their cash from the firm, Bloomberg reported.
The firm, which oversees about $4.1 billion, said it’s struggling to sell assets fast enough to pay out investors, the report found.
The investor redemptions began after the firm confirmed last that it was under investigation by Korean financial authorities over investments in convertible bonds.
Markets Insider