New York (HedgeCo.Net) – New York-based Ore Hill has suspended investor redemptions after hefty withdraws set off an “automatic gate.” The $1.2 billion Ore Hill International Portfolio, which is partially owned by hedge fund giant Man Group Plc, was frozen after investors sought to redeem about $300 million.
The credit strategies fund posted a loss of about 6.5 percent this year, after an unimpressive 2007 in which the fund returned a mere 1.8 percent. A board meeting has been planned to discuss the next course of action. Often, hedge fund will suspend redemptions in an effort to wait out unfavorable market conditions. Other times, it serves as a precursor to the eventual closing of the fund.
This year has proven to be one of the toughest for the hedge fund industry, with hedge funds down as a whole 3.5 percent, according to data from Hedge fund Research. Like many other funds, Ore Hill experienced losses stemming from the credit crisis.
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