United Capital hedge funds halt payments

Embattled hedge fund management group suspends redemptions from four funds following losses in subprime mortgages.

NEW YORK (CNNMoney.com) -- United Capital Asset Management has temporarily suspended payments from four of its Horizon funds following losses from its investment in subprime mortgage bonds.

Redemptions for the Horizon Fund L.P., Horizon ABS Fund L.P., Horizon ABS Fund Ltd. and Horizon ABS Master Fund Ltd. were halted "in order to protect the interests of our investors," as the firm analyzes market risks. United Capital plans to resume processing payments "as soon as it is prudent."

"We wish to emphasize that UCAM and Horizon are not liquidating and intend to continue in operation," the firm said in a statement Tuesday.

In the past ten days, the firm received an unusually high number of redemption requests, including one from its largest investor which accounts for one-quarter of the firm's assets under management.  Top of page