Sipprelle Shuts Down Arx Hedge Fund, Plans to Retire

Dwight Sipprelle is shutting down his $1.2 billion Arx Global High Yield Master Securities Fund, citing ``turbulent'' market conditions, six months after his brother Scott closed a firm.

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``Asset liquidity is the worst in my career,'' wrote Sipprelle, 50, the former co-head of Morgan Stanley's high-yield department. The effect of bank losses and attempts to preserve capital will hurt the wider economy, he wrote.

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The Arx fund, a global credit fund, invested in bank loans used to fund buyouts, high-yield bonds and sovereign debt. Last year, the value of bank debt plunged from above par to a record low of 86.28 cents on the dollar in February after banks were stuck with $230 billion of loans promised to fund buyouts they couldn't sell.