Jemmco Capital Winding Down Hedge Fund

Updated from 1:44 p.m. EDT

Jemmco Capital, a hedge fund that's been linked to the mutual fund trading investigation, is returning the money of investors in its eight-year-old flagship fund.

David Muschel, the manager of the New York hedge fund, says the process of returning money to investors in the $300 million Jemmco Partners should be completed by Sept. 30. Muschel informed investors, who include a number of institutional fund-of-funds, in a recent letter.

The fund intends to remain active until the end of the quarter. ...