Fund closures as competition heats up

Increased fund closures are signalling the lack of obvious investment opportunities in the markets, Jacob Schmidt, director of global hedge fund rating and research at Allenbridge Hedgeinfo, said.

The European Distressed Debt fund managed by Gary Klesch, which had $15m assets under management, went out of business recently due to heavy losses including exposure to WorldCom.

Schmidt said he expected more closures in distressed debt 'where risk management is less transparent.'

Henry Rourke, managing