Billionaire Chris Hohn's London-based hedge fund lost $123 million from its Porsche investment and $113 million (78 million pounds) from Volkswagen (VW) but expects the car manufacturer's stock could yet double to 200 euros ($223.80).

"We think the humbling experience of the crisis, together with significant management changes, will provoke VW to cut costs aggressively," Hohn said in the quarterly letter to investors.

Overall the hedge fund lost 0.3 percent for the first three months of the year in its main fund bouncing back from an 8.4 percent loss in January to post gains of 3.9 percent in February and 4.8 percent in March, the letter showed.

Total assets at the end of March were $10.99 billion, up 0.5 percent from the end of December.

(Reporting by Maiya Keidan; editing by Simon Jessop)

Stocks treated in this article : Volkswagen AG, Porsche Automobil Holding SE