June 26 (LPAC) -- Cheyne Capitol Management Ltd, a London-based hedge fund hit by the U.S. subprime mortgage crisis, sold off assets for only half their "assumed value". One of Cheyne's funds, Queen's Walk Investment Ltd., according to Bloomberg and FT, had invested in the riskiest portions of bonds backed by mortgages and had lost 67.7 million euros ($91 million) in the year ending March 31. Cheyne had also held 12% of its assets in the risky U.S. subprime housing market. So, it sold off most of its mortgage backed securities, at 50%, and cut its level of debt to just 6.6 times its assets, down from its previous leverage ratio of 28.5 times. The firms's manager said: "We have derisked the company."