BFAM Partners received redemption requests totalling around 10% of its assets in June as the firm recorded a 16% loss for the first half of the year, according to a report by Bloomberg.

BFAM Partners received redemption requests totalling around 10% of its assets in June as the firm recorded a 16% loss for the first half of the year, according to a report by Bloomberg.

The report cites an unnamed source as revealing that the Benjamin Fuchs-founded firm has seen assets shrink by about a third overall in the past year to just over $3 billion following heavy looses from failed bets on Chinese credit markets.

The Hong Kong-based multi-strategy hedge fund firm, which lost 3.2% in June, is reportedly attempting to deal with the redemption requests from its Asian Opportunities Fund by establishing a “liquidating vehicle” of “certain illiquid assets”.

A letter sent to BFAM investors has proposed cash settlement for about 77% of June's redemptions, with the remaining 23% set to be paid out as shares in the liquidating vehicle.