- Dubai Debt Delays Revive Fear of Financial Crisis
- Rush Starts as Holiday Shopping Season Revs Up
- US Markets Bracing for Selloff on Dubai Debt Worries
- US Dollar Falls to 14-Year Low Against the Yen
- ING Prices Share Issue at Hefty Discount
- UK's Darling to Downgrade 2009 Growth Forecast
- Tommy Hilfiger's Estate in Conn. Sells for $20 Million
- Cheap Robotic Hamsters Are Holiday's Unlikely Craze
- Almunia Set to Take Neelie Kroes' EU Competition Job
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
MOST SHARED
- No Thanksgiving Rest for Retailers in Sales Race
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- Attraction of Switzerland to Businesses
- More Asia Executives Resigned to Economy Flights: Survey
- UK's Darling to Downgrade 2009 Growth Forecast
- Oil Falls Toward $74 Amid Dubai Debt Jitters
- Gold Will Collapse Like Oil Did in 2008: Charts
- Japan Raises Prospect of G7 Statement to Cool Yen Rally
Text Size 
In the midst of ongoing concerns about hedge fund losses and liquidations, Highland Capital has told investors that it's closing its Crusader fund, CNBC has learned.
Charles Gasparino
On-Air Editor
In a letter to investors, Highland said it was winding down the fund in "an orderly fashion," citing the "unprecedented market volatility and disruption to the financial system over the past 60 days, and especially within the last two weeks."
"The environment is one where the fundamental tools to manage the Crusader Funds' trading, hedging, shorting and financing are highly constained, and in some cases unavailable," Highland said.
Hedge funds had their worst month ever in September, with average losses of 6.2 percent, according to an estimate by TrimTabs Investment Research.
All major categories of funds chalked up losses over the month, but emerging markets, long equity funds and distressed strategies had the worst results. The declines came as investors withdrew $43 billion from hedge funds—almost seven times the previous monthly record for redemptions, TrimTabs said.
On Wednesday, amid concerns about troubles at Citadel, the fund confirmed to CNBC that its flagship Kensington and Wellington funds, which hold around $15 billion in assets, were down between 26 percent and 30 percent so far this year.
But Chicago-based Citadel denied rumors that it's having difficulty meeting margin calls and is facing mass redemptions. The firm also denied that it's unwinding any positions.
At that time, traders with knowledge of the activity of at Highland said the big hedge fund company, which has $14 billion under management, was unwinding some of its assets.
On Wednesday, Highland settled on 30 cents on the dollar for $20 million to $30 million in bank loans that the firm only last week was trying to unload for 60 cents on the dollar.
Highland also has put out a bid list for $600 million of loans, according to a trader.
- CNBC's David Russell contributed to this report.
Print
Email
- What you need to know.
- Social enterprises are becoming a new asset class for the ethically-minded.
- Ever wished your cab driver would stop nattering and just get to where you're going? Well that moment is near(er).
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
Data is a real-time snapshot *Data is delayed at least 15 minutes