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 firms 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