Wanna Cut Bait?

Hey, hedge fund investors! Have you had enough of this mess? Do you want your money back?

If so, you better pull the trigger today.

Most hedge funds require at least 45 days notice before the end of a quarter from investors who want to pull their funds. And that day is today: August 15.

Reuters asks if today will be D-Day for hedge funds. In recent weeks, hedge funds from Goldman Sachs, Bear Stearns, D.E. Shaw, Highbridge Capital, and AQR Capital Management have suffered significant losses.

"Everyone always waits until the last second to get out, and (Wednesday) is the last second," Mike Hennessy, managing director at hedge fund of funds Morgan Creek Capital, told Reuters.

Think you'd feel bad about pulling out? Don't.

"No chief investment officer is going to get fired for deciding to get out of hedge funds right now," said Philippe Bonnefoy, chairman of hedge fund advisory group Cedars Partners. "You can always reinvest later on."

Then again, some investors think that now is just the right time to get into some of these distressed funds, as evidence by the news yesterday that outside investors poured money into a struggling Goldman Sachs fund.

Felix Salmon reminds us that some managers institute a "high water mark," where investors don't have to pay performance fees until the value of the fund reaches a previous level.

So if you believe the good times for hedge fund managers are coming back, at least you'll get it on the cheap as the run-up starts.

But if you don't believe that, then today's your day. Just hope that your hedge fund manager isn't on the golf course when you call.

by Megan Barnett