Is it time to draw stumps on hedge funds too?

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Complex debt funds have gone. How long for Hedge Funds when the FT reports this today:

Guy Wyser-Pratte has blocked withdrawals from his hedge fund after the veteran New York arbitrageur and activist warned that the "calamitous" market conditions were the worst since he started trading in the 1960s.

Wyser-Pratte Eurovalue, a $500m fund campaigning for change at mid-sized companies across Europe, suspended withdrawals on Tuesday after some clients asked for their money back.

The fund is the latest to be hit by withdrawals amid a wave of redemptions that many in the industry are warning could prompt further sales of assets to raise cash to meet redemptions.

It's not a great way to attract new business.

Will there be anything left of the so-called legitimate offshore business model soon?