EBF & Associates of the US is liquidating its Lakeshore International fund, a $669 million convertible bonds hedge fund that is among the ol...

EBF & Associates of the US is liquidating its Lakeshore International fund, a $669 million convertible bonds hedge fund that is among the oldest and at one time was among the most successful funds of its type.

It is the latest example of such funds closing their doors in recent months, due to poor performance and redemptions from disillusioned investors. More closures are expected, especially among funds that allow investors to pull out their money only at year's end.

Allocations to this strategy have dried up and some analysts and fund-of-hedge-fund managers regard such closures signal the slow death of the ailing investment strategy. But others see the closure as part of a necessary hollowing-out process that could eventually allow convertible-bond investments to recover.