Archeus Capital, the recently-collapsed multi-strategy hedge fund, could have avoided redemptions which caused it to implode if it had backed up its records and not relied solely on its administrator, according to industry sources.

Archeus was a multi-strategy fund that focused on exploiting arbitrage opportunities in convertible bonds. Its strategy fell out of favor with investors recently and the company faced redemptions. The firm had $3bn (€2.3bn) in assets last year that have since dropped to $700m. This week, it announced it would close by the end of the year because its administrator, which a source named as GlobeOp Financial Services, failed to maintain accurate records.