Hedge fund Fortelus and other investors are preparing to oust the management of a publicly listed investment trust because they disagree with its investment decisions, the Guardian has learned. The growing row provides a rare insight into the way hedge funds operate.
Fortelus owns 14% of the shares of Strategic Equity Capital (SEC), a trust managed by London-based asset manager SVG Investment Managers. Along with shareholders representing another 20% of the company’s capital, the rebel group will request management to step down at an extraordinary general meeting to be held in London on 14 August. "We’re launching an EGM to remove the board of this underperforming fund," said one of the investors.