Tudor is planning to put hard-to-sell investments, mostly corporate bonds and loans from emerging markets, into a new fund called Legacy, said the source, who was not identified. BVI Global, which started in 1986, would focus on easier-to-trade stocks, bonds, commodities and currencies.

More than 80 firms have liquidated funds, restricted redemptions or segregated assets following stock-market declines and a credit freeze that started with rising defaults on US sub-prime mortgages.

Tudor declined to comment.

Investors have asked to pull 14 per cent of their money from BVI Global as it lost 5 per cent this year through November, the person told Bloomberg. That compared with a 2.25 per cent gain through 24 November by an index of similarly managed funds compiled by Hedge Fund Research.

Tudor, which oversees $17 billion, is asking BVI Global investors to approve the plan to split the fund in the next two months. Clients would have their money allocated between BVI Global and Legacy based on the division of assets, the source said.

The hedge fund manager will not be able to charge investors a performance fee until the Legacy assets regained their high watermark, or peak value. The firm will be able to sell off the assets in Legacy next year and return money to clients.