Hedge Funds

Gruss shuts distressed fund, opens first long/short


August has been an eventful month for $1.5 billion Gruss Asset Management, with one strategy shutting down and another launching.

The $200 million Gruss Distressed Opportunity Fund is in the process of being liquidated - with the remaining securities expected to be sold off by the end of the month.

The distressed fund is being shuttered because the portfolio manager had opted to retire from Gruss. However, performance had been weak in 2005, with the firm's only fund dedicated to distressed investing giving up about 6.5% through the end of July. The four-year-old fund did much better in