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Hedge fund company Seminole Management will return $400 million of investors' money, saying it couldn't "maintain historical-like returns" in today's market, according to the Wall Street Journal, which noted that the fund has lost more than 7% in its primary fund since the beginning of the year.

The Journal cited a letter sent to investors and a representative of the company as saying,“the game has changed” with regard to the trading strategy the 20-year-old fund uses on the more than $3 billion it managed as of the beginning of the year. Three years ago, a Forbes article touted Seminole co-founder Michael Messner as a "master investor." According to the Journal, the firm's letter to investors blamed factors including electronic trading and central bank activity.

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It's a tough week for hedge fund investments: The news comes just a day after Bloomberg reported that $8 billion hedge fund company BlueCrest Capital Management would shut down after a 15-year run, returning all investor funds and instead just managing the assets of firm head Michael Platt and his partners.

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