Swedish hedge fund manager Brummer & Partners is to wind up Latitude, its once award-winning $1.2bn (€940m) global macro fund.

The firm said the fund's investment positions had been closed. It asked clients to redeem their holdings before the end of the month after three years of operation. The fund had lost 6.8% of its value in the first two weeks of last month. An investor said it had a big exposure to UK fixed-income securities and had been hit by the Bank of England's decision to raise interest rates in August. Last month's shortfall was added to a 26.6% loss the fund had made over the previous 13 months. The run of losses caused Latitude's annualised net return since launch to fall from 52% a year, which consultants said was the best performance of any large European global macro fund, to 13%. Investors had started to remove money from Latitude.