Crosby Forsyth Alternative Income fund halts exits

LONDON, July 23 (Reuters) - Crosby Asset Management CSBq.L said it has stopped investors taking their money out of the $108 million Forsyth Alternative Income fund as the credit crisis hits liquidity in its holdings.

The fund of hedge funds, which holds a basket of fixed income, event-driven, distressed and high yield and other hedge funds, has written to investors to inform them of the restructuring, managing director Steve Coxshall told Reuters on Wednesday.

A number of hedge funds in sectors such as credit, where conditions have been tough, have suspended investor exits since the credit crisis began in order to avoid a firesale of assets.

“We’ve sent newsletters to our shareholders. We’ve done it to protect investors and to protect the underlying assets,” Coxshall said.

“Most credit funds have gated positions because they are having mass redemptions. We’ve no intention of winding down the fund.”

Performance of the Alternative Income fund has suffered since the onset of the credit crisis last summer.

The fund lost 4.76 percent last July and 4.47 percent in August, while during the first four months of 2008 it is down 6.61 percent. (Reporting by Laurence Fletcher; Editing by David Cowell)


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