The ghost of Lehman Brothers continues to weigh heavily on the hedge fund industry.

The latest victim of the bankrupt Wall Street bank is Boussard & Gavaudan Asset Management, whose flagship Sark fund posted a 1% lost last month due to exposure to London-based Lehman Brothers International Europe. 

The €1.5 billion fund did not use Lehman as its prime broker, but had collateral posted with it to cover over-the-counter derivatives. The fund also had a loan with Lehman.

The Lehman-linked losses were just a drop in the bucket, however, during a dreadful September for the hedge fund industry in general and Sark in particular. The fund plummeted an estimated 11.4% last month, according to investor documents, leaving it down 17.1% on the year.

The B&G also announced plans to announce plans to cut the discount on its listed hedge fund vehicle. Boussard & Gavaudan Holding currently trades at a discount of almost 30% to net asset value.

The news was not all bad for B&G: The firm nearly tripled its fiscal year profits, earning US$33.3 million in the year ended last November. In the year-earlier period, the firm made $11.5 million.