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From Kirsten Bischoff, Opalesque New York:

Launched in January 2001, the New Jersey-based, Barnegat Fund (www.barnegatfund.com) spent almost its entire existence with $500m in AUM and was closed to new investors. Additionally, the managers had the enviable position of a waiting list to reference the few times redemptions opened space within the fund. Then, over the course of 2008, as happened to many managers in the hedge fund industry, Barnegat's investors tapped into such longtime investments as the fixed income fund to meet liquidity needs.

Robert Treue, who previously worked at Litchfield Capital and Paloma Funds until striking out on his own in 1999, manages Barnegat. Though the fund experienced its first down year in 2008, Barnegat's annualized returns of +15.86% were not enough to keep investors from redeeming $100m over the course of the year.

Sources close to the firm say that a large fund of funds which has been struggling to get through the financial crisis was a large portion of the redemptions and as such, for the first time in a long time the managers find themselves looking to raise $100m to get the assets back to their previous levels. With YTD performance at +81.35% the managers will close again at $500m as those are the most optimum levels for the fund.

Barnegat is certainly not alone. The hedge fund industry has seen its asset......................

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