Threadneedle Investments is losing the manager of its European Crescendo hedge fund at the end of the year.

Darrel O’Dea, who has managed the European long/short equities fund since its inception in 2000, is reportedly taking a break from money management. The fund, which has enjoyed a 6.6% annualized return, is, like many of its peers, suffering through a difficult year. It is down 11.4% in 2008 after shedding 4.3% in the third quarter.

O’Dea will assist new manager Paul Doyle through the end of the year, with Doyle formally assuming command in November. Like O’Dea, Doyle has worked on the fund since its launch. William Davies, head of European equities at Threadneedle, will serve as deputy fund manager.