A notice period is the advance warning an investor must give before redeeming, typically 30 to 90 days for a hedge fund. It gives the manager time to raise cash without forced selling.
Notice periods run to a dealing day: with monthly dealing and 30 days' notice, an investor who gives notice on 15 March redeems at the 30 April NAV. Longer notice periods suit less liquid strategies; liquid strategies can offer shorter ones.
Notice, lock-up and gates together define a fund's liquidity profile, which allocators match against their own liquidity needs.
Notice periods for POD funds are set per fund. Because dealing can be daily and settlement is atomic, POD funds can offer shorter notice than a traditional monthly-dealing fund where the strategy allows.
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