The board of directors of the $650m (€734m) Penta Japan Fund, a long short Japanese equity hedge fund, has stopped clients taking money out of the fund.

The fund, set up by former Soros Fund Management manager John Zwaanstra, has received too many redemption requests, following a fall in the fund's value this year. The decision to suspend redemptions is temporary until further notice. It also covers redemptions due to be paid out on 31 December 2000.