Clinton Group retrenches after losses in multistrategy fund

by

Clinton Group, the hedge fund firm founded by George Hall, is reviewing its options

following steep losses and redemptions from its flagship multistrategy fund.

Clinton Multistrategy Fund lost an estimated 35% in 2007, most of it in November and December, and about 40% more in January and February this year, as the value of asset-backed securities and leveraged loans plummeted, according to several people familiar with the firm.

Another product, Clinton Special Opportunities Fund, which follows an event-driven strategy, has also suffered losses as positions in plays such as Sharper Image soured, these people said.

Assets in Clinton Multistrategy