New York-based hedge fund Tourbillon Capital Partners L.P. is shutting down after six years due to poor returns, Bloomberg News reported, citing a letter sent to clients.

Tourbillon's founder, CEO and co-chief investment officer, Jason Karp, said the hedge fund will return more than $1 billion to investors at the end of 2018. At its peak, Tourbillon managed $3.4 billion in client assets, and has lost 2.6% year-to-date through August, Bloomberg reported, citing a person with knowledge of the performance. Since inception, the fund's annualized returns have reportedly averaged 12.3%.

Following the hedge fund's closure, Karp plans to spend most of his time focusing on investments in health and wellness industries, Bloomberg reported.

Two other hedge funds, San Francisco-based Criterion Capital Management LLC and Boston-based Highfields Capital Management LP, recently announced that they are shutting down following poor performance.