The Wall Street Journal-20080118-Elgin Fund Bars Redemptions

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Elgin Fund Bars Redemptions

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LONDON -- A credit hedge fund run by London-based Elgin Capital LLP and that has shrunk to $300 million has barred investors from pulling their money, as the declines in leveraged-loan and high-yield bond markets continue to reverberate throughout the market.

Elgin Corporate Credit Fund, run by Mike Clancy, a former global co- head of credit trading at Merrill Lynch & Co., and Guillaume Bonpun, former head of bond syndication at Dresdner Kleinwort, told investors last month it was temporarily suspending redemptions or subscriptions to the fund, as well as calculations of its net asset value.

It normally accepts quarterly redemptions with 30 days' notice.