Everyone asked for their money back. The fund shut the door.

In hedge funds, everyone can ask for their money back on the same day. And the fund can shut the door. That's not a scandal. It's in the contract. It's called a gate. Say a fund holds one billion dollars. Some of it can't be sold quickly. Then comes a bad quarter. Investors ask for four hundred million, all at once. To pay that, the manager sells what it can, fast. At whatever price it gets. And whoever stayed is left holding the rest. So the contract sets a limit. Say ten percent of the fund each quarter. That's a hundred million. Against four hundred asked for. Everyone gets a slice. The rest waits for next quarter. So why do investors care? It protects those who stay from a forced sale. And it means your money leaves slowly, when you most want it. Your exit is a schedule, not a button.