The problems continue for the macro hedge fund.

PointState Capital has moved to stop investors from pulling all of their capital in full.

According to an investor letter seen by Bloomberg, the company will only allow recent redemption requests to obtain 88% back in cash. The remaining 12% will be distributed as portfolio shares for new vehicles that have “somewhat limited liquidity.”

Those assets reportedly include a cash collateralized loan, a residual private equity investment, and a pre-IPO convertible note.

“We’ve concluded that this is the most appropriate way to fairly and equitably balance the interests of all of our investors,” the letter says, according to Bloomberg.

PointState Capital Problems

This is the latest setback for PointState Capital. Last month, we reported that Josh Samuelson would depart the firm he co-founded. A letter stated that Samuelson “decided to retire from investment management.”

Samuelson co-launched PointState Capital in 2011 with support from Stanley Druckenmiller, who seeded the firm $1 billion. The fund started another $4 billion from clients of Duquesne, where co-founder Zach Schreiber had been a top-performing portfolio manager. At its peak, the firm had AUM of $10 billion.

The fund lost roughly 19% in 2018 and found itself on the wrong side of oil bets in Q4 2019. The firm also found itself tied up in aggressive bets on satellite operator Intelsat and on Fannie Mae and Freddie Mac that didn’t pay off. IPointState experienced roughly $1 billion in redemption requests as a result.

The recent Bloomberg report indicates that Q4 redemptions came in at $196 million.