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(Bloomberg) -- Lansdowne Partners LP’s main hedge fund lost almost 15 percent in 2016, its first loss in five years as wagers on equity markets failed to pay off, according to an investor letter.

The $9 billion Lansdowne Developed Markets Fund gained 3.8 percent in December, failing to recoup losses earlier in the year, the letter shows. A spokesman for the London-based hedge-fund firm declined to comment.

The rare loss by the hedge fund that bets on rising and falling shares lags behind a more than 4 percent gain by peers as stocks advanced, according to preliminary estimates from data provider Eurekahedge. The S&P 500 Index gained 12 percent last year including reinvested dividends, while the MSCI World Index rose 8.2 percent.

Some of the fund’s short bets such as a wager against Glencore Plc, the world’s biggest commodity trader, suffered as the stock rallied more than 200 percent. Lansdowne is still Glencore’s last remaining major short seller in the U.K., according to data compiled by Bloomberg. Short bets involves selling borrowed securities in the hope of buying them back at lower prices.

The loss last year erased the fund’s near 17 percent gain in 2015. The pool’s last annual decline was in 2011, when it had lost about 20 percent, according to another investor document.

To contact the reporter on this story: Nishant Kumar in London at nkumar173@bloomberg.net. To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Andrew Blackman

©2017 Bloomberg L.P.

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