The activist hedge fund Elliott that forced change at Alliance Trust this year has increased its stake to more than 14 per cent, adding to pressure on the underperforming trust as it prepares to announce an overhaul.

Alliance Trust, one of the UK’s largest investment trusts, made concessions to Elliott Advisors, the UK arm of New York-based Elliott Management, in April, but has failed to improve performance or narrow a discount to net asset value, which stands at 12.8 per cent.

The hedge fund held about 10 per cent of the trust in April, when Alliance Trust agreed to take new directors on to its board to avoid a shareholder vote on the issue.

– (Copyright The Financial Times Limited 2015)