Top City Hedge Fund Lansdowne Scraps CEO Role

One of London's leading hedge fund managers is scrapping its chief executive's role amid torrid markets which have seen hundreds of millions of pounds wiped from the value of its flagship fund.

Sky News has learnt that Lansdowne Partners informed investors on Friday that Alex Snow, a well-known City figure, would move from holding the post of chief executive to focus on what it calls its developed markets strategy.

Lansdowne has been one of London's most successful hedge fund start-ups since it was founded in 1998, and manages more than $20bn (£14bn) on behalf of investors.

It (Other OTC: ITGL - news) was among a select group of institutions invited to buy shares during the controversial £3.3bn privatisation of Royal Mail (LSE: RMG.L - news) in 2013.

Mr Snow's change of role will see him remain as a partner but focus more attention on Lansdowne's investment in Oxford Sciences Innovation (OSI), a vehicle set up to assist the funding of intellectual property commercialisation from Oxford University.

He took on the new role of chief executive at Lansdowne in the autumn of 2013, having built Evolution into one of the City's most highly regarded stockbroking firms.

Like many hedge fund managers, Lansdowne has had a volatile 2016, with year-to-date performance to 8 April at its developed markets fund down almost 8%, according to investors.

That contrasts with its performance last year, which showed a return of nearly 17%, making it one of the UK's top hedge fund managers.

Insiders confirmed that the recent performance of its flagship fund was unrelated to the decision to abolish the chief executive's role.

Lansdowne operates a range of investment strategies, including conventional equity holdings as well as short-selling listed stocks in the hope that share prices fall.

"As a proper partnership, the CEO role was a title, denoting running the firm outside investment decisions," said one person close to Lansdowne.

"The CEO function doesn't now need his level of expertise, so it makes sense to deploy his talent in the flagship fund."

Sources said that Stuart Roden, Lansdowne's chairman, would now chair its management committee which has ultimate responsibility for the running of the firm.

Lansdowne's other senior executives include Pete Davies, who was best man at the wedding of George Osborne, the Chancellor.

Lansdowne declined to comment.