Hedge Fund BFAM’s Redemptions Mount Amid 16% First-Half Loss
- June redemptions amount to under 10% of hedge fund’s assets
- Firm’s assets have shrunk by about a third in the past year
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Benjamin Fuchs’s hedge fund firm BFAM Partners has seen assets shrink by about a third in the past year to just over $3 billion after being saddled with heavy losses on Chinese credit bets, said a person with knowledge of the matter.
The Hong Kong-based firm set up a “liquidating vehicle” of “certain illiquid assets” to help meet June requests for withdrawals from its Asian Opportunities Fund, according to a letter to investors who wanted their money back. Redemptions for the month amounted to less than 10% of assets, said the person, asking not to be named as the information is private.