The vice chairman and chief investment officer of hedge fund Halcyon Asset Management has been forced out. The move reportedly follows major redemptions from institutional investors.

Steve MandisAccording to an investor letter dated Tuesday and obtained by The New York Post, Steve Mandis has left the firm, "effective immediately."

While the letter gave no reason for his departure, FINalternatives has learned that the subsidiary of the $12 billion hedge fund run by Mandis has been performing poorly and that some of the fund’s largest investors are pulling their money.

One source told FINalternatives that it was an “unceremonious” departure. “They are being hit with large redemptions,” said the source.

Halcyon declined to comment on the matter.

The subsidiary, Halcyon Structured Asset Management, was co-founded by Mandis in 2004. Mandis also served on the boards and risk management committees of Halcyon and all of its affiliates, except for Halcyon Real Estate Investors.

Prior to joining Halcyon, Mandis worked at Goldman Sachs, where he served as a portfolio manager in the firm’s Special Situations Investing Group, a multi-billion dollar proprietary investing area within Goldman Sachs' Fixed Income Division.

According to the firm's Web site, Jason Dillow and Vijay Mohan remain as the structured asset management groups portfolio managers and managing principals. The two joined the firm in 2005 from Goldman Sachs.

Earlier this year Halcyon had planned to go public, but plans have been shelved because of current economic conditions.

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