Financial Times FT.com

Cerberus to bar withdrawals from two funds

By Francesco Guerrera in New York and Sam Jones in London

Published: September 2 2009 23:30 | Last updated: September 2 2009 23:30

Cerberus, the investment group, is barring investors in two new hedge funds from withdrawing money for three years in an effort to avoid a repeat of the large outflows that followed its lossmaking purchases of Chrysler and GMAC, the group’s executives said.

The move to introduce a three-year “lock-up” is rare among hedge funds and could pave the way for other managers to follow suit.

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