Hedge Funds

Ellington splits assets, lays off 16


Ellington Management Group, the Greenwich, Conn. hedge fund shop founded by Michael Vranos, has shifted a block of its hard-to-value assets into a separate fund to be sold over time.

The action splits the assets in Ellington’s flagship fund, Ellington Overseas Partners, which invested in hard-hit mortgage-backed securities. At the same time, Ellington laid off 16 employees.

Ellington would not comment on the moves.

Among hedge fund managers, Vranos was one of the earliest to block investor withdrawals in the current market downturn, restricting redemptions in two funds last year. At the time, Vranos said some of the assets