LONDON (Dow Jones) -- Four hedge funds managed by Absolute Capital Management Holdings were thrown a lifeline Saturday to keep operating for another year after investors approved restructuring moves.

According to a person at the meetings in the Cayman Islands and another person who was briefed on the meetings, investors in the funds -- Absolute European Catalyst, Absolute Octane, Absolute Return Europe and Absolute East West -- agreed to keep most of their capital in the funds invested until November 2008. This will give the funds a year to sell down their holdings in illiquid US penny stocks.