(The Wall Street Journal) -- A British hedge fund backed by a beleaguered German bank and exposed to US mortgages has shut its doors in a move that underscores the credit-market downturn's continuing effects on European investors and institutions.

In a brief note on its Web site yesterday, London hedge-fund manager Synapse Investment Management said it closed its €200m ($272.5m) Synapse High Grade ABS Fund No. 1. German bank SachsenLB, the fund's main investor, asked for its money back in recent weeks and triggered the closing, according to people familiar with the situation. A SachsenLB spokesman wasn't available for comment.