Last year, the fund saw investors redeem roughly 8 percent of their money from Luxor, a number that is roughly in line with what investors have done every year.
Luxor had been a popular fund in the hedge fund industry, gaining recommendations from such influential industry consultants as Cliffwater LLC, which advises on $56 billion in alternative assets invested by public and private pension funds as well as endowments and other big investors.
But in 2015 it lost 19.2 percent when the average fund lost about 1 percent and it started 2016 with a 5.2 percent loss in January. This unnerved some clients, including Rhode Island's state pension fund, which gave Luxor $50 million to invest in 2014, to exit. Last week its investment committee voted to pull its money out at the end of June and the fund told Reuters that it expected to receive $35 million back.
Luxor did not say when it expects to return the rest, saying only "We will continue to actively manage the assets held by the SPV until we can liquidate them in an orderly manner."