Setting up for the wind down: closing a hedge fund

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Deciding to liquidate a hedge fund is one of the toughest decisions of a manager’s life. Sometimes it is a call that has to be made.

The big question is when to start planning for that wind-down process. Should it be something a manager and directors anticipate from the fund’s birth or does it make more sense to wait until a wind-down is clearly on the horizon?

In recent months the question has become more relevant thanks to the extreme markets that caught many hedge funds unaware and unprepared.