Pine River Capital Management is closing its $1bn flagship hedge fund after clients asked to withdraw more money than the firm was expecting, according to a person familiar with the matter.

The move will further shrink the Minnetonka, Minnesota-based firm’s assets under management to $7.5bn, half the roughly $15bn it managed in 2015. An expected January 1 spinoff of a fund run by portfolio manager Renos Dimitriou into a standalone hedge fund would shrink that further.