A fixed-income fund of hedge funds managed on behalf of theGuinness family lost 7 per cent of its value in the first quarter following the collapse of Peloton, which managed a portion of its funds, according to Financial News.

A report published by the family’s Iveagh Private Investment House this year stated that an asset-backed securities fund managed by Peloton had been one of its five largest holdings, FN said.

The four other largest positions were managed by London Diversified, Alcentra European, Zaiss and Morley Fund Management. Last year, the fixed income fund registered a gain of 8.5 per cent thanks to short positions in sub-prime mortgages.

The Iveagh fund was originally part of the Arundel Partners stable of funds of hedge funds acquired by the Guinness family in 2006. Since launch in July 2003, the fixed-income fund had only suffered negative performance in nine months.

Iveagh Private Investment House, which also manages third-party funds, looks after $800 million, of which Peloton accounted for no more than $1 million, before losses forced it to shut in March.

The Guinness family established its wealth through its eponymous brewery. Edward Guinness, the first Earl of Iveagh, established the family office in 1886.