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Surely fantasy where the bad guys win is the definition of horror?
... on which topic, The Ratman's Notebook by Stephen Gilbert springs to mind.
I didn't see mention of Matt Woodring-Stover's Acts of Caine in this thread - but they are the closest I can think of to what you're asking for. Caine may be a hero of sorts, but it's hard to say that good is winning.
Part of the problem is that we naturally side with the protagonist, no matter how repulsive; good examples from a scattering of genres are the amoral Charlie Mortdecai (Kyril Bonfiglioni), Colonel Moran (Professor Moriarty: The Hound of the Durbervilles by Kim Newman) and even assassins seem positively sympathetic these days (Sandman Slim by Richard Kadrey, The Killer's Game by Jay R. Bonansinga, Robin Hobb's trilogy of trilogies).
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