Lans­downe Part­ners re­treats from short sell­ing af­ter losses

The Daily Telegraph - Business - - Business -

◆ One of London’s old­est hedge funds is to re­treat from short sell­ing by shut­ting down its main £2.2bn fund af­ter losses, writes Michael O’Dwyer.

Lans­downe Part­ners, which was once seen as the gold stan­dard for eq­uity in­vestors, has suf­fered years of poor re­turns in its

Lans­downe De­vel­oped Mar­kets Fund. The long­short fund backs firms that its man­agers think will grow and bets against those which they ex­pect will suf­fer a share price de­cline.

Lans­downe, which man­ages a re­ported $9.8bn (£7.8bn) of client money, is be­lieved to have been hit by its bullish out­look on the UK and the air­line sec­tor.

The firm told in­vestors that it had be­come harder to make money by bet­ting against com­pa­nies and that it be­lieved now was an ex­cel­lent time to back listed com­pa­nies.

It added: “Ex­ces­sive short-ter­mism has cre­ated val­u­a­tions which are ex­treme.” In­vestors in the De­vel­oped Mar­kets Fund are now be­ing al­lowed to with­draw their cash or switch to one of the pub­lic­ity-shy firm’s other funds, In­sti­tu­tional In­vestor re­ported.

Lans­downe Part­ners de­clined to com­ment.

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