Sun Capital Partners is slashing its workforce and changing its hedge fund’s strategy, the latest alternative investments shop to take a long, hard look in the mirror amid investment losses and the weakening economy.

The Florida-based firm has laid off 10% of its staff, about 23 employees. Among those losing their jobs is the head of Sun Capital’s New York office.

“We expect our organization to continue to grow in the coming years as it has done each year of our existence,” the firm said in a statement. “After taking into consideration this reduction in force, we have a larger team today than we had at the start of 2008.”

The firm also said its $1.3 billion Sun Capital Securities hedge fund will stop investing in equities after posting undisclosed losses last year. The fund will now focus exclusively on distressed debt investments.

“We have come to the conclusion that minority equity investing requires substantial resources, and our ability to influence other stakeholders to drive necessary changes has not been as robust as initially expected,” the firm said. “We believe buying distressed debt that leads to a controlling or blocking position is a much better path to achieving our goal of value creation so that’s the path we will pursue going forward.”