(Reuters) – Britain-based hedge fund Meditor Capital Management Ltd said it would shut down its European equity business, citing an internal review and new European rules that restrict short-selling, Bloomberg reported.
The $3 billion hedge fund-firm run by Talal Shakerchi said it could liquidate most of its fund within a few weeks, the report said.
In a note sent to investors, Shakerchi said that investors should eliminate “carve outs,” in which individual money managers have control over portions of the fund.
He blamed European rules that require hedge funds to disclose their bearish bets against companies for hurting the firm, Bloomberg said.
“These rules disadvantage larger managers who actively short like Meditor,” Shakerchi said in the letter, adding that he was no longer confident that the fund could continue to offer good value to its clients at the current scale.
Meditor could not be reached for comment by Reuters outside of regular UK business hours.