Rather than honor the $1.4 billion in redemptions, or 14% of the $10 billion flagship hedge fund at Paul Tudor Jones’ asset management firm on Dec. 31, the company will delay making those payments until March 31, 2009, in hopes that the market will improve and assets can be sold for higher values, Dow Jones reports. Normally, the fund honors redemptions once each quarter.

Tudor Jones told investors in a letter: “While Tudor BVI currently has more than $6 billion in cash, this redemption level has led us to examine the fund’s liquid and illiquid positions as it relates both to making redemption payments and to the future direction of the fund.”

The fund will join a handful of other hedge funds that are delaying redemptions, including Deephaven Capital Management and Blue Mountain Capital Management.

In October, investors redeemed $40 billion from hedge funds.

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