Hedge Fund Sentinel Management Group Calls To Stop Investor Withdrawals
By: Roy | August 14, 2007
The Illinois based hedge fund management group, Sentinel Management Group, has asked regulators for permission to stop investors withdrawing funds from some Sentinel Management Group investment funds.
Sentinel Management Group have contacted the Commodity Futures Trading Commission and called for withdrawals to be frozen until Sentinel Management Group “can honor them in an orderly fashion”.
“Investor fear has overtaken reason and has induced a period in which most securities have simply ceased to trade,” according to the client letter, which does not specify which funds are affected.”
“We are concerned that we cannot meet any significant redemption requests without selling securities at deep discounts to their fair value and therefore causing unnecessary losses to our clients.”
Market analyst Sam Kirtley of The Gold Prices Newsletter said: “This shows how much fear is in the market at present. When investors get scared, they seek a safe haven and the best safe haven is gold and silver. This is why we have urged our readers to invest in gold and gold stocks to profits from the rush of investors that are going to come to gold to protect and preserve their capital.”
Sentinel Management Group is in charge of $1.6 billion according to a filing with the U.S. Securities and Exchange Commission last month.
As of yet, Sentinel Management Group have not had their request accepted.
What do you think of the Sentinel Management Group situation?
Shouldn’t investors be allowed to withdrawal their money from Sentinel Management Group funds?
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Sentinel Management Group Update: Sentinel Funds Request Denied, Sentinel Money Market Remains Trading
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