Denver-based Quixote Capital Management is closing its doors, its crusade fatally wounded by the ongoing credit crisis.

Founder Jerry Paul, who earlier this year closed Quixote’s mutual fund, said the firm’s hedge fund will liquidate this month. With little capital available to pursue buyouts and acquisitions, Paul told the Denver Post that “there is not much to do” with his merger arbitrage offering.

The fund’s returns have been in the single-digits, Paul, a former high-yield and fixed-income manager at Invesco Funds Group, says. The fund manages about $30 million.