Pardus, a New York-based hedge fund manager with $2 billion of assets under management has blocked clients from pulling out their money in a bid to avoid a stampede for the exits due to volatile market conditions.

Pardus Capital Management sent a letter to investors on 26 March, telling them it would halt withdrawals to its fund, according to Financial News, quoting an unnamed source.

Pardus has large investments in a small number of companies including United Airlines parent UAL and Delta Airlines, General Motors and Virgin, FN said.

The hedge fund manager was forced to take action because its funds had been “disproportionately affected by the recent market volatility,” according to a statement by Pardus.