Peloton Partners plans to apologise to investors on Wednesday after the London hedge fund manager’s $2bn (£1bn) flagship fund imploded and lost all their money.

Peloton, founded by former Goldman Sachs partners Geoff Grant and Ron Beller, will use a conference call to set out the reasons behind the failure of the ABS fund and the expected shutdown of the firm’s other fund, Peloton Multi-Strategy, one person familiar with the firm said. The $1.6bn Multi-Strategy fund had about 40 per cent of its money invested in the ABS fund, which is now worthless.