A London-based hedge fund that suffered losses betting against US retailer GameStop Corp during the first meme stock rally in January is shutting down, the Financial Times reported on Tuesday.

White Square Capital has told investors that it will shut its main fund and return capital this month after a review of its business model, the newspaper said, citing people familiar with the fund and a letter to investors.

White Square suffered double-digit percent losses in January, the report added.

The firm did not respond to a Reuters request for comment outside of regular UK business hours.

(Edited by : Priyanka Deshpande)