Ann: Magellan Global Fund Partnership Offer Opens, page-7

They are trapped because the manager doesn't have to accept redemptions.

In an open fund, the manager is required to accept redemptions of units. They will often facilitate this through either cash holdings or the selling of stock.

In a closed fund - managers don't accept redemptions. You are at the mercy of the secondary market. That is, finding another investor willing to buy your stock.

This is the whole reason they often trade at significant discounts. If there is no one on the other side of the trade willing to pay at par with the NTA - tough luck.

Managers, just like Magellan and every other manager, love closed funds - because once the money is raised they don't have to worry about a flock of investors trying to redeem their units when performance comes up short.

That's why it's called trapped.