A Goldman Sachs hedge fund launched in January this year with more than $6 billion under management lost almost $1 billion in September alone, the Financial Times reported, while another US hedge fund firm, Blue Mountain Capital, has temporarily halted client exits, reports said.

The Goldman Sachs Investment Partners, has told investors it lost $989 million by September.

Most of the fund's losses stemmed from investments in commodities, basic materials, metals, mining, energy and agriculture, the FT said. Losses from investments in convertible bonds - debt instruments that can convert into equity - also contributed to poor returns, the newspaper said.

Goldman Sachs spokesmen could not be reached for comment.

The average hedge fund has lost roughly 19 per cent so far this year, according to data from Hedge Fund Research. The sector has been hit hard by the credit crunch, prompting dozens of funds to halt or restrain redemptions.

Blue Mountain Capital Management has temporarily halted redemptions at its largest hedge fund after clients asked to withdraw money despite its "distinguished" performance, according to a letter to its investors.

New York and London-based Blue Mountain said in the letter it had come up with a "redemption and recapitalization plan" to protect all its investors in the $3.1 billion Blue Mountain Credit Alternatives Fund.

The fund is down 2.4 per cent year-to-date, the letter said, far less than the average fund which has lost 20 per cent this year.