Hudson Bay Joins Hedge Funds Locking Up Investor Cash for Longer

Hudson Bay Capital Management is the latest hedge fund locking up investor capital for longer, according to people with knowledge of the matter.

Sander Gerber’s firm in April transitioned clients in its flagship fund to a 12.5% quarterly investor gate level, down from 25% — meaning it will now take two years to fully exit the fund instead of one.

The multistrategy firm said the shift would enhance stability and provide flexibility during times of market disclocation, one of the people said, asking not to be identified discussing confidential information. Investors who opted for a more prohibitive 6.25% gate ...