* Raising money for European, convertibles funds
* Winding down master fund's illiquid investments
LONDON, July 27 (Reuters) - British hedge fund firm Polygon Investment Partners is looking to raise money for two new funds, a source close to the company told Reuters, as it winds up its main multi-strategy fund and returns cash to investors.
The firm has recently launched the European Equity Opportunity fund and the Convertible Opportunity fund, the source said on Monday, and is seeking money from outside clients as well as offering investors in the master fund opportunity to invest.
"It sees dislocations and some great opportunities in these areas," the source said.
Polygon, which was founded in 2002 by Reade Griffith and Paddy Dear, is in the process of winding up its Global Opportunities fund, which had $2.5-$3 billion in assets at the end of last year, after investing in illiquid assets.
The firm, which has limited redemptions, is returning cash to investors and will now focus on hedge funds in specific strategies rather than one multi-strategy fund.
Polygon declined to comment.
Earlier this month Reuters reported that Centaurus Capital has returned to event-driven investments after winding down its $1.2 billion Alpha fund. [ID:nLH28146] (To read the Reuters Hedge Fund Blog click on blogs.reuters.com/hedgehub; for the Global Investing Blog click here) (Reporting by Laurence Fletcher and Quentin Webb; Editing by Greg Mahlich)