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York Plans to Shutter $2 Billion Credit Fund Amid Withdrawals

York Plans to Shutter $2 Billion Credit Fund Amid Withdrawals

(Bloomberg) -- Jamie Dinan’s York Capital Management is shuttering its main credit hedge fund following poor performance.

York is suspending redemptions from its Credit Opportunities fund as of year-end as the firm struggles to meet withdrawals, according to a person with knowledge of the matter. The fund, which oversees almost $2 billion, has lost about 8% this year. It has had an annualized return of 11.9% since its February 2001 inception.

“Tradeable distressed credit markets have fundamentally evolved in ways that have adversely impacted the York Credit Opportunities funds’ performance and portfolio liquidity,” the firm told investors in a letter dated Dec. 19. “Moreover, substantial redemption requests have recently been received.”

The Wall Street Journal reported the plans earlier Monday. A representative for York, which oversees about $18.5 billion across several funds, declined to comment. The firm has about $8 billion in credit strategies.

York expects to begin returning capital to investors in January, and will hand back up to 30% of investors’ money by March, the letter said.

The firm’s flagship multi-strategy fund has gained 11.7% this year, according to the letter.

To contact the reporter on this story: Katia Porzecanski in New York at kporzecansk1@bloomberg.net

To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Alan Mirabella, Katherine Burton

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