No let-up for Lansdowne Partners' flagship fund

The main hedge fund run by London-based Lansdowne Partners, already bruised by difficult markets in 2016, is now nursing a near double-digit loss for the year.

Lansdowne Partners is based in London’s Mayfair

The firm’s $ 11.4 billion Developed Markets fund, run by Peter Davies and Jonathon Regis, lost 9.7% between the start of the year and March 11, according to industry data seen by Financial News. This compared with a 3.8% loss for the wider sector of equity-diversified hedge funds investing globally.

The losses continue a bad run that had already wiped almost $ 1 billion off the value of assets in the fund by early March, according to a report in The Wall Street Journal.

Meanwhile, the industry data showed that the group’s $ 392 million Lansdowne European Equity fund lost 15.7% over the year to March 11. This compared with a 5.4% loss of the wider sector of equity-diversified hedge funds investing in Europe.

Lansdowne declined to comment.

The performance is a marked reversal on 2015, when the two funds were strong performers. Developed Markets returned 16.9% on the back of short positions in commodities and mining, and long positions in technology, and the European Equity fund delivered 28.2%.

In February, Financial News reported that the Mayfair-based hedge fund manager had decided to close its Lansdowne Global Financials Fund after it lost 18.7% over the year to February 19.

But the firm is not the only established name to have endured a difficult March. Hefty losses in recent weeks mean the €578 million Odey Swan fund, managed by renowned investor Crispin Odey, is down 33% year-on-year.

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