Steve Persky, Dalton Investments

Judgement and experience are critical. The first judgement is whether the illiquid securities are appropriate for the liabilities under management. If managing a fund that provides monthly or quarterly redemptions to clients, then having illiquid securities can pose a major problem if redemptions occur.In bull markets there can be apparent liquidity for many types of securities which will become extremely illiquid in an adverse market. Experiencing the illiquidity of a bear market is really