Brummer & Partners, the Swedish hedge fund manager that was forced to close its $1.2bn (€900m) Latitude fund in September, has shut a second fund.

The €17m ($22m) Race Point fund had been running since June last year but only returned 1%, below its target. The hedge fund group decided to close the fund jointly with portfolio managers Douglas Cliggott and Thomas Van Leuven. The manager said the decision would affect a limited number of investors. Race Point was one of three funds due to be launched by the manager. It used exchange-traded funds to take long and short positions in industries, rather than in individual shares. The hedge fund manager said: "Brummer & Partners shares the portfolio managers' belief that Race Point's assets under management would not likely reach critical mass within the near future." Latitude, the previously award-winning global macro fund, which closed after three years, lost 26.6% of its value in the 13 months to August. A wrong-way bet on UK interest rates hurt performance and investors had started to withdraw money before the closure. Brummer's other two new funds are Archipel, a market-neutral equity fund using quantitative research, and Alluvion, a quantitative global tactical allocation fund.