The Hermitage Fund, which is managed by Bill Browder and invests in Russian companies, has lost 13.2% for the year to May 25 following a flood of share sales in the country causing "IPO fatigue" among investors.

The loss was confirmed in a letter to investors. It compares to a loss of 8.9% over the same period for the CSFB ROS index. The fund argues that the recent slew of initial public offerings has been so great it has overwhelmed domestic liquidity that has supported the market in the past.