Pioneer Alternative Investments, the hedge fund wing of Italian bank Unicredito, has folded its $51m (€41m) global macro fund in the first sign of a widely-expected industry shakeout.

A spokesman for Pioneer said the fund had been wound down at the end of September and that 97% of its assets had been transferred to a different fund with a more clearly-defined strategy. The global macro fund was up 2% overall since its launch four years ago but had fallen 7% during the first eight months of 2004.