To get cash back, some hedge fund investors will have to wait

Reuters reports that some investors in hedge funds will have to wait to have part of their investments returned in cash.  Alden Global Capital's Alden Global Distressed Opportunities Fund LP, known for snapping up stakes in media and publishing companies, told investors that redemption of a portion of their investments would be delayed.

According to a letter reviewed by Reuters, Alden Global Capital has put some of its clients' redemption requests into a sidepocket, effectively restricting immediate access to some of their money. "A portion of your withdrawal request for the August 31 withdrawal date will be placed into an Alternate Withdrawal Account," said the letter, dated that day.

The restriction, which has not been previously reported because the fund is private, follows on the heels of a difficult 2011 when the fund, founded by vulture investing specialist Randy Smith, suffered losses of more than 20 percent…..

http://www.reuters.com/article/2012/12/12/us-hedgefunds-access-idUSBRE8BB1S620121212