A side pocket separates hard-to-value or illiquid assets from the rest of a fund, so redemptions don't force a sale.
What the film says
In hedge funds, part of your money can stay behind when you leave. It's called a side pocket. Say a fund holds twenty million of assets it can't sell. It moves them to one side. Investors who leave get cash for the rest, and keep their share of the pocket. So why do investors care? It protects those who stay, and traps those who wanted out.
In the glossary: Side pocket
A simple example with round numbers, not advice. Terms vary by fund.
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