Penta Fund to Deny Redemption Requests

Losses cause liquidity concerns

By John M. Baker, Esq.

Penta Japan Fund Ltd. told investors that it temporarily won’t be able to honor some $120 million in outstanding redemption requests. According to a detailed article on, the fund has lost 47.4% of its value this year after gaining 153.8% last year net of fees. describes Penta Japan Fund as a $546.7 hedge fund; other reports put its assets at $650 million. Fund management told investors that the lines of credit from prime broker Goldman Sachs remain unchanged and that none of Penta’s eight principals have withdrawn capital from the Japan-focused fund.

The fund intends to honor redemption requests after it has successfully increased liquidity in an orderly manner.

The article is available at

Copyright 2000, John M. Baker, Esq., Stradley, Ronon, Stevens & Young, LLP, 1220 19th Street, N.W., Suite 700, Washington, DC 20036 – (202) 822-9611- Fax (202) 822-0140 This article was originally posted to the FundLaw List, To subscribe to FundLaw, send a blank e-mail to

Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.

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Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page -, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.