Once a poster child for hedge funds, UK-quoted manager RAB Capital is now epitomising the devastation in the alternative investment industry with today's announcement that it is shutting down almost a third of its funds.

RAB, founded in 1999, shot to prominence in 2004 when it announced its Special Situations fund had returned 1,274% the previous year. Financial News described this at the time as "a timely reminder that in the right hands and given the right market conditions, hedge funds can produce excellent performance".