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Komfie Manalo, Opalesque Asia:

Another big hedge fund is shutting down and is joining the list of fund managers who have thrown in the towel.

Daniel Arbess said he was shutting down his Perella Weinberg Partners Xerion fund with an estimated $600m in assets because of poor performance amidst the volatile markets. Arbess founded Xerion fund in 2002.

The 53-year-old Arbess said he would start returning investors money next month. At its peak, Xerion fund managed over $3bn in assets. However, this year’s volatile markets saw the fund fell 2% year-to-date, its only second losing year during its 12-year history.

Last week, Lonestar Capital Management also announced it would shut down for the second time in eight years after the fund's performance in October dipped, hurt by the whipsaw in the market.

Jerome Simon, Lonestar's founder, said in a letter sent to investors that the fund's failure to get its portfolio consistently right had weighed on its performance, particularly in recent months. Simon called the closure of the fund a "bittersweet moment," and said its performance in October was "challenging due to intense volatility during the month."......................

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