BlueCrest Capital Management is shuttering an asset-based lending hedge fund battered by huge losses and investor redemptions.

The US$11 billion British firm is winding down its Specialty Asset Finance Fund, which managed US$200 million as recently as late last year, Reuters reports. Big losses—amplified by the leverage BlueCrest used—and big redemptions forced the fund to close many of its money-losing positions, further increasing its losses.

“BlueCrest saw redemptions rise after it lost money in the Petters fraud, and its leverage made things worse,” a source told Reuters. “It has had to deleverage fast to meet redemptions, forcing the fund to sell assets into a bad market and accentuating losses.”

BlueCrest lost some US$20 million in the alleged US$3 billion Ponzi scheme perpetrated by Minnesota businessman and hedge fund manager Thomas Petters.