D.B. Zwirn to liquidate fund following $2bn redemption requests

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D.B. Zwirn & Co. will liquidate its largest hedge fund following redemption requests from clients amounting to more than $2 billion that followed disclosures of improper accounting at the firm.

The firm will close its Special Opportunities Fund, which held about $4 billion in assets, roughly 80% of the firm’s total assets. D.B Zwirn will continue to manage roughly $1 billion in assets unrelated to Special Opportunities.

An internal investigation had revealed improper accounting of expenses and transfers, the firm revealed to investors in early 2007. A spokesman for D.B Zwirn told Bloomberg that  the firm was an “unfortunate