(Reuters) – Paloma Partners has decided to pay fleeing investors mostly through the equivalent of IOUs and partly in cash, the Wall Street Journal reported on Monday, as the hedge fund grapples with a profusion of redemption requests.

The firm did not have enough easy-to-sell assets on hand to immediately satisfy redemption requests while also maintaining diversification in its investment mix, the Journal’s report added citing a recent letter to investors.

Paloma, which was founded by Donald Sussman and invests with a focus on a quantitative trading strategy, did not immediately respond to a Reuters request for comment.

Sussman said in the letter to investors the firm is expected to start 2025 with around $1.7 billion in assets under management, about half as much as it managed about a year earlier, according to the Wall Street Journal’s report.

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)