Hedge fund Stone Lion suspended redemptions in its oldest fund Friday, the latest pain in the high-yield debt market, The Wall Street Journal reported.
The firm said its $400 million portfolio fund received "substantial redemption requests," according to the paper. Stone Lion says it manages around $1.3 billion, and focuses on distressed debt.
Stone Lion's move follows steps taken by Third Avenue Management, which on Thursday said it would stop withdrawals from a high-yield bond fund that it is attempting to liquidate. The value of many distressed and risky investments has plummeted recently.