Louis Bacon has become the latest star of the hedge fund world to be humbled by turmoil in global markets, suffering such lacklustre returns this year that he plans to return some $2 billion (€1.64 billion) to investors in his flagship fund to make it more nimble.

The head of Moore Capital, which has $15 billion under management, is one of the most prominent figures in the industry due to a stellar performance since the firm was founded in 1989.But Mr Bacon said yesterday uncertain markets meant his flagship fund had become too large to match past returns. – (Copyright The Financial Times Limited 2012)