Further indications of the financial damage done by the collapse of Sentinel Management Group started to emerge on Wednesday when Capital Fund Management, a Paris hedge fund, said it stood to lose 10 per cent of its assets as a result of the cash management firm’s troubles.

CFM said in a letter to 600 clients that its Discus Master Fund probably faced losses of $407m. Sentinel’s collapse contributed last week to wild swings in global stock and credit markets.