Hedge funds: heading for exit

Polygon, Plexus Partners, Russell Investments – the drumbeat of hedge funds facing significant difficulties grows louder by the day. This week’s crop follow reports last week that Tisbury Capital Management, Cycladic Capital and Knight Capital Group are all facing mass redemptions. The latest hedge fund woes are no respecter of size or strategy or track record – and they will get worse. These runs on funds – a bit like runs on banks – are a rational response to poor performance, illiquidity, in...