Hedge fund Brevan Howard Capital Management is closing an emerging markets fund, according to a person familiar with the matter, as the shockwaves from a torrid year for emerging markets continued to reverberate.

Brevan Howard's Emerging Markets Strategies Fund lost 15% last year after it was caught off-guard when the US Federal Reserve signaled its plans to reel in stimulus measures. That was a heavy blow compared with key benchmarks; on a total-return basis, the JP Morgan Emerging Market Bond Index lost just over 5% in the same period in dollar terms. The fund, which controlled around $2.7 billion of assets as of April last year, lost 5.2% in the first two weeks of last June alone, according to investors.