Greg Coffey’s Kirkoswald Asset Management is moving to secure longer-term investor capital by launching a new share class that could require clients to wait up to five years to fully redeem their investments, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the New York-based firm – which oversees roughly $20bn in assets – is funnelling new subscriptions into its flagship strategy through this extended lock-up structure. The fund is also expected to close to new capital around mid-year.
The shift reflects a broader trend across the hedge fund industry, where strong investor demand is enabling managers to impose stricter liquidity terms. Locking in capital for longer periods helps firms mitigate the risk of sudden outflows and provides greater stability for long-term investment strategies.
Peers including Millennium Management and Hudson Bay Capital Management have implemented similar measures, with redemption timelines stretching up to five years and two years respectively in certain cases.
Extended lock-ups can also smooth revenue volatility, giving managers more predictable fee streams and allowing for sustained investment in talent and infrastructure.
Coffey, known for his macro-focused emerging markets trades, returned to the industry in 2018 to launch Kirkoswald. The firm has delivered solid recent performance, posting a 0.23% gain in March and bringing first-quarter returns to approximately 11%, according to reported figures.
Kirkoswald reportedly declined to comment on the changes.
