Drake Management has pulled the plug on its $2.5bn flagship 'Global Oportunities' hedge fund after failing to secure enough support from investors to keep it operating.

Drake, which manages about $11bn, told investors in a letter on Wednesday night that it had decided to wind down the fund over the next year, but would launch a follow-on fund for those who wanted to stay with the firm.

Global Opportunities lost 24 per cent last year and another 10 per cent by mid-March this year, which prompted $1bn of redemption requests.