Toscafund, the UK hedge fund which lost over half its value last year, has written to redeeming investors asking if they would like to reconsider their decision to withdraw funds, pointing to strong investment opportunities and a turnaround in performance in December.

In a letter to redeeming shareholders seen by Financial News, the hedge fund said 2008 had been the fund's worst year to date, as the MSCI World Index slumped -42%.