Sources told Bloomberg that PCA Investments have chosen to close a multistrategy hedge fund after its main external investor pulled out its backing. The outside investor is China's sovereign wealth fund. The closure was first reported by The Wall Street Journal, Bloomberg said.

The people who spoke on the condition of anonymity because the information is confidential said PCA Investments shut down its office in Hong Kong that concentrated on making Asian stock investments. The closure led to the reduction of at least five jobs. What will happen to the fund's office and employees in Beijing is still not certain, the report said.

The fund was started by Founder Hu Hang in the second half of 2011 with the $500 million backing of China Investment Corp or CIC. A person close to the sovereign wealth fund said the decision was made on commercial and financial purposes. It was also done following market principles, the source said.

Bloomberg reported that PCA was the only hedge fund startup known to have obtained the support of the sovereign wealth fund. It was also one of the biggest hedge fund established in Asia after the global financial crisis hit in 2008. CIC has also poured its support in hedge funds that have been operating in the industry for some time. Citing a 2009 report in the WSJ, Bloomberg said the funds supported by CIC included Capula Investment Management based in London as well as a fund of hedge funds managed by the Blackstone Group and Morgan Stanley.

The sources told Bloomberg that from the time it was founded, PCA's hedge fund had been making money. They added that a strategy change was the reason why CIC is taking out its capital. One source added that the stock investments of PCA were able to post double digit returns annually in the past two years, the report said.