Allianz Global Investors will liquidate two hedge funds after they suffered losses amid the market disruption caused by the coronavirus outbreak, The Wall Street Journal reported, citing a spokesperson.

Structured Alpha 1000 and Structured Alpha 1000 Plus incurred heavy losses despite hedging their portfolios with put options, which allow holders to sell assets at a pre-determined price, according to The Journal.

"The portfolios were restructured and de-risked significantly during the course of this turmoil, but not without sustaining significant realized losses," the spokesperson said in an email sent to the publication.

Allianz Global Investors, the Allianz SE investment division, which manages $569 billion in assets, will also close a related offshore feeder fund, the report said. The firm has 27 Structured Alpha funds.

"While markets will remain challenging, we believe the remaining funds are now well positioned," the spokesperson noted.