Satellite Hedge Fund to Shut Down After Client Withdrawals

Satellite Asset Management LP, a $2.8 billion hedge fund founded by former employees of billionaire George Soros, is closing down because of client withdrawals, Bloomberg said on its website late Friday.

From Bloomberg: “The New York-based firm has started returning money to investors from its three funds, Satellite Overseas Fund Ltd., Satellite Fund II LP and Satellite Credit Opportunities Ltd.,” the report said.

Satellite, which oversaw about $7 billion at the end of 2007, was started 10 years ago by Rosenblatt, Gabe Nechamkin and Mark Sonnino, who worked together at Soros Fund Management LP. Satellite in November halted client withdrawals from its funds, which lost more than 35 percent last year.

According to the Chicago- based Hedge Fund Research, investors pulled $103 billion from hedge funds in the first quarter.

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