Barnett, who could not be contacted for comment, set up the $350m (£218m) fund in May 2010 after leaving his role as star fund manager at Aim-listed Polar Capital.
But he appears to have been unable to repeat the success of his Polar Capital Paragon fund, which returned more than 20 per cent in 2008, and has taken the decision to close the fund to focus on long-only investing.
Ridley Park Paragon reportedly lost 27 per cent last year, though it had been up by more than six per cent in 2012.
The fund said in a statement to the market last week that it planned to cancel its listing on the Irish Stock Exchange.
The volatile aftermath of the Eurozone sovereign debt crisis has thrown many hedge funds off course in recent years. Earlier this month OMG Capital closed its doors and returned cash to investors.