Ellington Financial LLC, run by Michael Vranos' $2.5 billion hedge fund firm, shelved its $208 million initial public offering as investors refused to finance its plan to buy mortgage-backed bonds without a government guarantee.

Ellington Financial's retreat brought to six the total of share offerings for funds established to buy real estate assets that have been shelved since Oct. 29.

The fund, which has returned 42% this year, was asking investors to pay 6.1% more than the value of its net assets, based on the midpoint IPO price of $26.

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