GLG Partners, London's second-biggest hedge fund, has limited withdrawals from its flagship emerging markets fund after the announcement that star manager Greg Coffey was leaving prompted a rush for the door by investors.

In a letter to investors on Tuesday, GLG said the fund had also put hard-to-sell assets into a special parallel fund, amounting to 12.4 per cent of the main $4.6bn (£2.3bn) fund, and begun to cash in big chunks of the portfolio, ready to pay out money in November.