What Is a Hedge Fund Redemption?

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A hedge fund redemption is when the investor withdraws part or all of their investment from a particular fund. Check the subscription agreement on a hedge fund investment to learn about fees or dates for redemption with information from a financial consultant in this free video on money management and personal finance.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

I'm Roger Groh of Groh Asset, and today, we're here to talk about withdrawals or redemptions from hedge funds. Now, a redemption from a hedge fund is simply you're withdrawing part or all of your investment from that fund. Within the subscription agreement that you signed when you entered that fund, you may be very limited as to specific dates when you can take money out, and then the total dollars that you can take out, and then the total dollars for everybody that can be taken out. So if you're not within your dates and you're not early and you're not under that dollar amount, you may not be able to withdraw or redeem your money. And if you've bought into a hedge fund, that means you're a sophisticated investor. Probably, you've had your accountant and lawyer review that document before entering the hedge fund. If you have any questions, you should go right back to them and say, "What are my choices for redemption in the hedge funds?" I'm Roger Groh of Groh Asset, and thank you very much for spending time with me.


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