Hedge fund Atticus loses more than $5 billion: source

LONDON (Reuters) - U.S. activist hedge fund Atticus Capital has lost more than $5 billion this year, a source familiar with the matter told Reuters, after its funds were hit by heavy falls in financial stocks.

Atticus, a high-profile player in deals such as Barclays' (BARC.L) unsuccessful bid for ABN Amro last year, saw total assets under management fall to around $14 billion at end-July from more than $20 billion last year, the source said.

The losses were mainly due to a 32.9 percent loss in the $7 billion Atticus European fund from the start of the year to the end of August and a 25 percent fall in the Atticus Global fund.

The firm, which employs a variety of investor lock-ups, saw few investor redemptions.

Atticus declined to comment.

The firm, which views itself as a long-term investor, has nevertheless delivered strong performance in recent years.

In 2006 founder Tim Barakett earned $675 million, according to hedge fund industry publication Alpha Magazine.

Last year, Atticus told Barclays to scrap its offer for ABN, saying it would be buying "an inferior business in an auction at inflated prices".

(Reporting by Laurence Fletcher; Editing by Quentin Bryar)