Two funds of hedge funds have this morning become the latest victims of hedge funds placing restrictions on withdrawals. Gottex Fund Management temporarily suspended redemptions from some of its products, while NewFinance Capital has moved illiquid assets in two of its products into "side-pockets", which effectively prevents them from being immediately withdrawn by investors.

Gottex has said it has temporarily suspended redemptions from a number of its products, affecting about 65% of its $13.5bn in assets. The funds affected by Gottex's suspension include those that invest in hedge funds betting on markets moving in specific directions, and in hedge funds that have no directional exposure to stocks or to interest rates.