WSJ: Cerberus Hedge Clients Withdrawing Funds

NEW YORK (Reuters) – Cerberus Capital Management’s core hedge funds clients have opted to withdraw the majority of the money in the funds, the Wall Street Journal reported on Friday.

Clients owning more than $4 billion of the $7.7 billion in assets in the Cerberus Partners hedge funds have opted to liquidate their holdings, rather than allow Cerberus to collect its typical fees and continue making new investments, the paper said, citing people familiar with the matter.

Cerberus executives hope that some investors who have opted for withdrawals can be convinced to change their minds, the paper cited the people familiar with the matter as saying.

Investors had been told they had until this week to vote on the fate of their hedge-fund holdings, the paper said.