Brevan Howard Asset Management is planning to close down its US$2 billion emerging market fund following a poor performance as investors began to focus exposure on developing markets.
The fund has lost 15% last year as investors focused on markets such as Brazil, India, and Turkey among others.
As part of the closure, Geraldine Sundstrom, manager of the fund, will leave the firm.
The fund, which started trading in 2003, bets across interest rates, currencies and bonds and has never incurred a loss and has generated US$17 billion in returns for its investors since its launch.
The shut down follows a sharp rise in global stock markets last year, which lagged behind the equity markets.
Recently, the firm has hired Gerhard Seebacher as co-head of global debt trading from Bank of America Merrill Lynch, and Vincent Craignou as senior trader from HSBC.
Brevan, with US$40 billion of assets under management, has expanded its presence in UK, with 198 of its 459 staff currently based in London.