The latest hedge fund hit by the restructuring bug is Ellington Management Group, which has segregated illiquid assets in its flagship fund and laid off staff.
The Old Greenwich, Conn.-based firm has split its Ellington Overseas Partners fund, Bloomberg News reports. Hard-to-sell assets have been hived off into a separate fund, allowing Ellington to avoid distressed sales at rock-bottom prices. Last year, the firm suspended redemptions from two funds which also had difficulty valuing illiquid assets.
Ellington has also slashed 10% of its workforce, laying off about 16 employees.