Q: Trez Capital has suspended redemptions of it's funds. Do you have any insights as to why. Have they done this before. Is it a sign of anything to be worried about. (FYI) I almost invested in one of the funds but did not because of the many conditions attached. Are the funds a worthwhile investment?
Thanks
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5i Research Answer:
Here is a link. The issue stems from a wave of redemptions. Its assets in the five funds are not that liquid and are not simply sold in the market like stocks. Thus, it needs time to manage the process. For now, it says that distributions will continue, but we would be cautious on expecting this to last. "Gating" is the first step and a halt of distributions often follows. Trez also says it is evaluating strategic alternatives. Fund assets are held separately from the manager, and Trez has a 30-year history. But none of this is good news and for now we would not invest in any of these funds.