Toscafund, London's biggest hedge fund specialising in financial services, has attracted $800m (£402m) of new money from investors this month in spite of a bet on bank shares that has seen it plunge more than a third this year.

Tosca wrote to investors last week to tell them of the new investment, which is locked up for three years - an important factor for hedge funds as it prevents them being hit by a liquidity crisis if investors lose confidence.