One of the UK's largest hedge fund managers has closed a fund with assets of more than $500m (€360m) as market conditions continue to buffet the sector.

BlueCrest Capital Management, with almost $12bn of assets under management at the end of June, last week told investors it was shutting an equity fund after a period of unacceptable performance. The fund recorded losses of 8.2% for the first eight months of the year, including a 5.4% loss in August, according to a spokesman for the firm who said market conditions were "bizarre".