New York-based hedge fund firm Mass Ave Global, has written to investors informing them that it has decided to liquidate its China and Asia-focused funds and close its office in Hong Kong, according to a report by Reuters.

In a letter to investors in the firm's flagship Mass Ave Global Partners fund, seen by Reuters, the firm wrote: "After careful consideration, we have determined that it is in the best interest of the master fund, the offshore fund and the US fund that all investors will be compulsorily redeemed and withdrawn."

While not specifying a reason for the fund closures, the letter did note two recent senior departures from the firm – co-founder Ray Guo, also known as Yirui Guo, who resigned as head of research in February, and Justin Dew, president, chief operating officer and chief compliance officer, who also left last month.

The first distribution of proceeds to investors will start before 30 June, according to unnamed Reuters sources.