Hedge Fund Liquidity
Free Training Video on Hedge Fund LiquidityThe following video was recorded for the Certified Hedge Fund Professional training program. In this video, I explain hedge fund liquidity and provide a definition of the lock-up period and how it affects hedge fund liquidity. If you are reading this via RSS or email, click here to watch the video.
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Here is a summary of this hedge fund training video on Hedge Fund Liquidity:
- Liquidity is often something taken into consideration by investors that invest in hedge funds.
- With some hedge funds, you have monthly liquidity and you put in a redemption request that will be filled by the end of the month.
- Other hedge funds have long lock-up periods because they invest in assets with longer investment horizons.
- The average lock-up period for a hedge fund is 18 months.
- A lock-up period could be very strict or the fund might simply charge a fee for withdrawing your money earlier than the agreed-upon time.
- Institutional investors may be better suited for these longer-term investments.