BlueCrest to shut asset-based lending fund-sources

* Sources say Blue Crest Specialty Asset Finance to close

* Losses, redemption requests force fund wind down - sources

* Lost reported $20 mln in Petters alleged $3 bln scam

By Martin de Sa'Pinto

GENEVA, June 30 (Reuters) - British asset manager Blue Crest is winding down its Specialty Asset Finance Fund after losses and redemptions forced the fund to close many positions at a heavy loss, sources familiar with the fund told Reuters.

BlueCrest declined to comment on the fund.

Three industry sources said the fund, which had assets of $200 million late last year, is one of many using an asset based lending (ABL) strategy to be vexed by redemptions this year, with leveraged funds such as BlueCrest's hit particularly hard.

"It's an open secret the fund is winding down, I'm surprised I haven't seen anything written about it yet," said one fund of funds manager. Another source, who manages an ABL fund of funds similar to the BlueCrest fund, said funds using the strategy have had redemption requests for up to 80 percent of their assets.

Most hedge fund strategies saw asset outflows during the financial crisis as investors fled to safer and more liquid asset classes such as treasuries.