The Thundering Herd is beating a path away from one of John Paulson's funds
Merrill, which is home to an army of financial advisers often referred to as the 'Thundering Herd', is liquidating client funds from Paulson & Company's Advantage fund.
The news was first reported by the New York Times.
The redemptions total $81 million, according to a person familiar with the matter. That is equivalent to around 4% of the fund's roughly $2 billion.
The wealth manager has offered clients the option of shifting their redeemed funds into Paulson & Co.'s more successful M&A fund, according to the person familiar with the matter.
Paulson's special situations fund has also been put on "heightened review", according to the person familiar with the situation. The New York Times report stated that the fund is now closed to fresh funds from Bank of America Merrill Lynch's clients.