Cantillon's von Mueffling exits hedge fund industry

*Cantillon to shut down its two hedge funds

*Firm to concentrate on managing its long-only portfolio

*Firm expects to return 95 pct of funds' assets by Sept 30

By Svea Herbst-Bayliss

BOSTON, June 18 (Reuters) - Hedge fund manager William von Mueffling is closing Cantillon Capital Management's two hedge funds, he said in a letter to investors, the latest high-profile manager to exit the industry.

Von Mueffling was ranked among the 25 top-earning hedge fund managers just two years ago.

But in the first five months of 2009, Cantillon's World fund lost 7.08 percent while its Europe fund lost 6.12 percent, ranking them among the industry's 20-worst performing funds this year, said people who saw the data but were not authorized to discuss it publicly.

He said he will focus on Cantillon's four-year-old, long-only fund and return all money invested in his Cantillon World and Cantillon European hedge funds.

Like some other managers, von Mueffling was caught off-guard by the stock market's recent rise and told investors he had to cover a large number of short positions after he bet share prices would drop, not climb.