Is yesterday's 30 per cent dive in New Star Asset Management's stock price overdoing it? Hardly. The former darling of the UK retail fund sector is in a nasty spot of bother.

To a degree, it is a sign of the times. Its funds are heavily exposed to UK commercial property and European equities - markets that have been badly hurt in the fallout from the subprime crisis. Several other UK property funds have already blocked withdrawals.