Mon Nov 3, 2008 7:48pm

BOSTON (Reuters) - Alternatives investment firm Blue Mountain Capital Management LLC has frozen its largest hedge fund after clients asked to withdraw a significant sum, Bloomberg News reported on Monday.

Withdrawals from the $3.1 billion Blue Mountain Credit Alternatives Fund were suspended to prevent the fund from being forced to sell assets in falling markets, the news agency reported, quoting a letter sent to the fund’s clients.

http://www.reuters.com/article/innovationNews/idUSTRE4A306420081104