http://www.reuters.c...TRE4AD04220081114

U.S. hedge funds anxious as redemption deadline looms

By Svea Herbst-Bayliss

BOSTON (Reuters) - Anxiety is sweeping the hedge fund industry before a crucial deadline on Saturday, when investors angered by recent heavy losses are expected to demand the return of billions of dollars.

"Managers have a pretty good feeling for what is coming, and there are significant redemption requests out there," said Stewart Massey, founding partner of Massey, Quick & Co., an investment consultant that puts money into hedge funds.

Saturday is the last day for thousands of investors to notify hundreds of hedge funds if they want their money back by year's end.

Hedge funds that require three months notice from investors who wanted to exit by year's end had a similar deadline on September 30 -- also known in the industry as "D-Day."

More such deadlines loom for funds that allow investors to give less notice before taking their money out, fund managers said.

In the last two days, several prominent fund managers made public predictions that illustrate the depth of gloom now sweeping the $1.7 trillion hedge fund industry.

Pension funds, endowments and wealthy investors have put money into hedge funds so quickly that industry assets have doubled in about three years.

Hedge funds are nursing their the worst-ever losses, with the average fund down 15 percent this year, and many investors are punishing the managers for lousy returns.

The flood gates are about to open.

George Soros, an industry elder statesman who emerged from retirement at age 78 to protect his fortune at Soros Fund Management, said he expects hedge fund industry assets "will shrink by between 50 percent and 75 percent."

Daniel Och, who runs Och-Ziff Capital Management Group (OZM.N: Quote, Profile, Research, Stock Buzz), told analysts he expects investors to run for the exits soon. The same goes for Wesley Edens, the head of Fortress Investment Group's (FIG.N: Quote, Profile, Research, Stock Buzz), who is also bracing for redemption notices.

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:-/

To think that EACH of those has some %retirement, %school investment caches -- along with the ill-gotten swag of all the ones who never did have any conception of 'adequacy' -- is just ... just incendiary is what I expect it Will Be.

If there proves to be NO ameliorating option appearing for the victims of any of these suede-shoe 30:1 leveraged scams, amidst all the other $100Bs down the rat-hole --

I expect that %n of those wiped out, will grab a couple of those 6.66 x [E6] guns strewn just everywhere, and head for some McMansion compounds (with the 6-car garages) ... guard-gate or no guard-gate (the underpaid bastard at said gate might well join the group, recalling the last $5 Xmas present from one of the Barons.)

(Even fuckedcompany.com is ... well go there and see)

Pity that No-ONE has more than the foggiest about wtf to do, itis becoming apparent -- nobody ever had the source code to begin with and they are just vamping.

Tis a massacree. Which might become literal, I wot.