The computer-driven hedge fund Winton, founded by businessman David Harding, has suffered a year of losses according to accounts seen by Financial News.
Pre-tax profits in 2016 more than halved, dropping by 53 per cent to £107.3m and hitting their lowest annual level since 2012. Meanwhile, revenues plummeted by 33 per cent to £267.2m
In notes accompanying the accounts, Harding reportedly said that assets under administration had fallen from $33.7bn to $32.1bn over the year, as net redemptions in the second half of the year outweighed first-half net subscriptions from investors.
It added that the fall in assets, combined with the investment programmes generating a loss of just over one per cent, caused the decrease in revenues. Winton also lost £20.9m on a currency hedge between the dollar and sterling.
A UBS study of family wealth investment offices earlier this year revealed that they are putting less money into hedge funds, following disappointing performance, and are instead looking to private equity and equities.