Cerberus Associates has shut the gate for its $4bn (€2.8bn) hedge fund after the US-based alternative investor sustained double-digit losses and redemptions in October and November, in what has been a particularly vexing quarter for hedge fund managers.

Cerberus Partners LP lost 12% of its value this year, mostly in the two months ending November 30 after having returns of 1% for the year through September, a source familiar with the situation said.