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Balyasny follows longer lock-up trend

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Balyasny Asset Management is planning to lock up investor money for longer joining a growing list of hedge fund firms that are extending the length of time they can hang on to investor cash, according to a report by Bloomberg.

Balyasny Asset Management is planning to lock up investor money for longer joining a growing list of hedge fund firms that are extending the length of time they can hang on to investor cash, according to a report by Bloomberg.

The report cites a Balyasny investor as confirming that firm has told clients that it will soon lock up their money for two years, with the changes set to take effect from 1 September.

Currently, an undisclosed percentage of clients may pull 25% of their money every quarter, but staring in April 2024, Balyasny will limit quarterly withdrawals to 8.3% for new money, meaning it would take three years to fully exit the fund. 

Balyasny has reportedly told clients that locking up their capital helps it to attract top talent and invest in infrastructure such as technology. 

Izzy Englander’s Millennium Management recently completed a plan to extend its full redemption period to five years from one, citing similar reasons, while for investors in Ken Griffin’s Citadel, it can take up to four years to fully withdraw cash.

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