Cheyne Capital slashed the gearing of the hedge fund’s London-listed vehicle on Monday after selling assets hit by the US subprime mortgage crisis for only half their assumed value.

Queen’s Walk Investment, a listed vehicle founded by Cheyne, said that it had lost €67.7m ($91m) in the year ending March 31, or €1.67 per share, compared with a profit of €9.7m the previous year.