Flameout in the U.K.

The sudden demise of New Star Asset Management Group may serve as a warning to struggling hedge fund firms — like Och-Ziff Capital Management Group, GLG Partners and Fortress Investment Group — that followed New Star in going public.

The sudden demise of New Star Asset Management Group may serve as a warning to struggling hedge fund firms — like Och-Ziff Capital Management Group, GLG Partners and Fortress Investment Group — that followed New Star in going public. London-based New Star, which runs an array of money management services, was delisted from the London Stock Exchange in early December, four years after its IPO, when it became apparent that it was in tatters.

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