Lansdowne Partners has decided it's too much trouble to invest half of its U.K. Equity Fund in the U.K.
The London-based hedge fund told investors in the vehicle that, in honor of its 10th anniversary, it would do away with a provision that requires half of the fund's assets to be invested in the U.K.
"The U.K.'s position as a magnet for globally relevant companies has clearly diminished in recent years leading to an excessive bias towards commodity-based sectors," fund managers Peter Davies and Stuart Roden explained. "Meanwhile, we should stress that our bias towards emerging market growth remains strongly embedded in our thinking notwithstanding our desire to invest in it through developed market companies."
Davies and Roden called the 50% U.K. requirement "overly restrictive." The two proposed a 90% gross exposure to developed markets, instead, Financial News reports.
Despite the proposed changes, Lansdowne does not appear to plan a less-British name for the fund.