Bahrain-based Investcorp has become the latest private equity investor to be hit by a diversification into other alternative assets, as a halving in the value of its hedge fund investments contributed to the group reporting its first yearly loss on record.

Investcorp's hedge fund assets halved in value from $7.9bn (€5.6bn) to $3.95bn over the year to the end of June, according to the group's annual results published today.