King Street imposes limits on redemptions for its hedge funds.

King Street Capital Management informed clients that the company is significantly restricting redemptions from its main hedge funds and transferring investors hoping to exit into a separate vehicle, which will gradually sell off assets. The fund, which has a 31-year history, is facing difficulties due to lackluster performance, client attrition, and the departure of senior staff. Currently, its assets under management are less than $8 billion, down from over $20 billion more than a decade ago. King Street's actions "will allow us to orderly manage and liquidate assets and realize positions at the most attractive exit points," wrote 61-year-old founder Brian Higgins in a letter to investors on Wednesday.