To avoid the possibility of investors bailing out at awkward times, a handful of hedge fund managers have taken a page from their private equity counterparts and introduced funds with lockup periods of five to 12 years. Following the decision by some investors to flee their hedge fund holdings because of the summer’s subprime mortgage crisis — a stampede that wreaked havoc on the investment portfolios of many hedge funds — firms such as BlueMountain Capital Management, Satellite Asset Management and Silver Creek Capital Management have turned...
