Complex Redemption Terms For Illiquid Assets

Summary

Implementing complex redemption scenarios for hedge funds. Liquidity analysis. Quantifying liquidity risks. 

Unlike traditional instruments, hedge funds are exposed to liquidity risks that present an important challenge unless properly quantified and managed. Hedge fund liquidity risks could be difficult to quantify because of two main reasons: low transparency of hedge fund holdings and complex redemption schemes. Risk Shell addresses the first problem of low hedge fund transparency by employing advanced style analysis techniques and stochastic models capable of identifying asset classes in hedge fund holdings. The second problem of complex, and mostly unregulated, redemption schemes can be effectively solved by the FoF Manager Liquidity component that incorporates virtually any possible redemption scenarios.

This tutorial explains the FoF Manager redemption options and special liquidity analysis tools that help hedge fund investors and fund of funds managers  manage liquidity risks in the most efficient way.

Hedge Fund Liquidity Risks And Redemption Schemes

• Understand hedge fund redemption settings and options.
• Learn how to define complex redemption scenarios.
• Understand gated redemptions: regular and irregular intervals.
• Understand early redemption and lockups.

How To Set Up Redemption Options For Hedge Funds - Step-by-step Tutorial

• Working with the FoF Manager wallets: the redemption grid.
• Setting redemption options when working with the Transaction Manager.

Risk Shell FoF Manager: Liquidity Tools

• Working with Liquidity Ladder charts and redemption schedules.
• Dynamic Liquidity Analysis: examples and practical tips.
• Working with the liquidity note calendar.

Potential Audience

Institutional portfolio managers, hedge fund investors, hedge FoF and multi-asset portfolio managers, risk managers, CIOs, advanced family offices.