Bermuda-based hedge fund Nephila Capital is expected to suffer losses through its exposure to the Japanese earthquake, according to a report citing two investor sources on MarketWatch yesterday.The $2 billion fund, which invests in catastrophe bonds, was down about 1.5 percent last month partly due to New Zealand earthquake, said one of the investors, but it wasn’t clear how its performance would be affected in the wake of the Japanese disaster.The report said that Nephila didn’t return a phone message left at its Bermuda office this week, while a representative at a San Francisco unit called Nephila Advisors said he couldn’t talk about performance of the firm’s hedge funds.