- Advertisement -
- Advertisement -

Four Facets of Liquidity in the Hedge Fund Space

Report: Systematic Strategies

- Advertisement -

Stockholm (HedgeNordic) – Hedge funds often impose restrictions preventing investors from redeeming capital at short notice for the benefit of both parties, but liquidity arrangements vary widely across the industry depending on investment strategy and financial instruments traded.

In the fourth instalment in a series of papers focused on the hedge fund industry, the Alternative Investment Management Association (AIMA) and the Charted Alternative Investment Analyst (CAIA) Association examine four facets of liquidity in the hedge fund space. The paper discusses (a) the liquidity of assets in which hedge fund managers invest; (b) the liquidity requirements for different strategies; (c) the funding liquidity of different strategies; and (d) the liquidity offered to hedge fund investors.

Most hedge funds tailor liquidity arrangements to the investment strategies they pursue to ensure investors can get the best possible return without compromising their ability to access their capital. Regardless of whether investors face mounting uncertainties as the future unfolds or not, understanding how to access the capital allocated to hedge funds and under what conditions is essential. The paper co-written by AIMA and CAIA represents a useful guide on the key concepts surrounding liquidity in the hedge fund space.


The complete paper can be downloaded below:


Picture © isak55—shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

The Value of Short Selling for Symmetry

Stockholm (HedgeNordic) – Stock-picking hedge fund Symmetry Invest has achieved a net-of-fees annualized return of 18 percent since its inception just over 11 years...

Month in Review – June 2024

Stockholm (HedgeNordic) – Despite June marking the end of a long streak of consecutive positive months, the Nordic hedge fund industry still achieved its...

New Equity Managers Join Borea to Bolster Fund Offerings

Stockholm (HedgeNordic) – Following the acquisition of a majority stake by Frendegruppen – a consortium of Norwegian independent banks, Borea Asset Management is strengthening...

Obligo Raises Final €75 Million for PE Fund

Stockholm (HedgeNordic) – Obigo Investment Management has announced the final close of its infrastructure-oriented private equity fund, Obligo Nordic Climate Impact Fund (ONCIF), raising...

RFP: Irish Investor in Search of Tail Risk Mitigation

Stockholm (HedgeNordic) – An Irish institutional investor seeks an overlay manager or managed options strategies to mitigate tail risk in its €2.5 billion fund-of-funds...

Cevian on Buying Spree, Discloses 5% Stake in Smith & Nephew

Stockholm (HedgeNordic) – Swedish activist investor Cevian Capital has disclosed a five percent stake in UK medical device manufacturer Smith & Nephew, signaling intentions...

Allocator Interviews

In-Depth: High Yield


Request for Proposal

- Advertisement -