Hedge fund co-founded by Jacob-Rees Mogg to close after losing top client

Somerset Capital will be wound down after UK’s largest wealth manager shifts £2bn mandate to another fund

Somerset Capital Management, the hedge fund co-founded by Jacob Rees-Mogg, has said it will be wound down, days after it emerged that it had lost two-thirds of its assets and its largest client.

The firm said on Thursday that it would be closing its London business, which manages funds on behalf of institutional clients such as asset managers and pension funds, and that it was in advanced talks to transfer the remainder of its top performing funds to a new investment adviser.