SEC Launches Probe of California Hedge Fund

The Securities and Exchange Commission has launched an investigation into Wood River Partners, two people familiar with the matter said, as investors grew worried because officers of the California hedge fund couldn’t be reached.

San Francisco-based Wood River, which told its investors that it had about $500 million in assets, aroused concern over the last week when it failed to return calls from investors, who are worried that the firm may have stopped operating.

The nature of the SEC investigation, described by one source as preliminary, could not immediately be determined. An SEC spokesman declined to comment.