Hedge funds have field day front-running the liquidation. 300,000 investors left twisting in the wind.
Exodus from funds with illiquid assets forces funds to block redemptions.
This time, a fund liquidity crisis traps institutional investors, including pension funds.
$30 trillion of assets globally are held by similar open-ended funds.
Shares of one fund plunged 22% on Friday. Other funds under pressure, raising serious questions about just how liquid “equity funds” in the UK are.
Kier shares are one of the biggest holdings of Woodford Equity Income fund.