Hedge fund firm JD Capital Management LLC is liquidating the $1bn Tempo Master fund that suffered heavy losses in the year to date.

J. David Rogers, a former Goldman Sachs executive said that "we are unwinding the Tempo Master fund" and that the fund, which managed roughly $1bn, was exposed to the "more troubled" spots of the market. The fund has lost more than 40 per cent in 2008, according to informed sources.

Mr. Rogers held prominent positions on Wall Street before launching his own fund firm. He had been co-head of Goldman Sachs' equities derivatives department and represented the firm when it worked with others to bail out hedge fund Long-Term Capital Management in 1998.

JD Capital will continue to manage money, concentrating on volatility arbitrage.