London-listed Polar Capital said its Polar Capital Discovery Fund, a global macro hedge fund, will be closed with money returning to investors within four weeks, suffering a small investment loss in the process, it said today.

The closure of the Caymans-registered fund will result in Polar Capital's £3.5 million investment in the fund also being returned as cash to the company. The action will realise an investment loss of approximately £600,000 (around $925,000), the firm said in a statement.

“This loss is currently more than offset by other realised and unrealised gains from the company's other investments. The company remains confident of meeting its expectations for the full year ending 31 March 2011,” it said.

Total assets managed by the Discovery team at Polar Capital stood at $48 million at the end of last year. The firm releases its performance fee revenue figures on 14 January.