The reversal of fortune at Madrid hedge fund manager Vega Asset Management Partners has given rise to a new phrase in the industry: "Doing a Vega". Until recently Vega was the doyen of the industry as its assets under management surged fivefold in less than two years.

However, Vega has just reported its first calendar year of negative returns after nine years in business. It risks becoming an emblem of the industry, where average investment performance has fallen as assets and the number of funds have grown.