Hedge Fund Liquidity
Free Training Video on Hedge Fund Liquidity
The 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.If you'd like to view more free finance training videos, visit FinanceTraining.com.
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.
