Hedge fund blowups coming?

Roubini:

The next stage will be a run on thousands of highly leveraged hedge funds. After a brief lock-up period, investors in such funds can redeem their investments on a quarterly basis; thus a bank-like run on hedge funds is highly possible.

This quarter ends next Tuesday, so if massive withdrawals are scheduled, then the hedge fund will be forced to liquidate between now and then. This will create all manner of volatility and cross-currents in the markets. Like we need more of that…

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