A Mayfair-based hedge fund has acquired a major holding in shares in Bowleven in the wake of a boardroom coup at the oil and gas firm, which moved its headquarters from Edinburgh last year.

A regulatory filing by Sand Grove Capital Management shows the firm recently increased its interest in the voting rights in shares in Aim-listed Bowleven to 5.03 per cent.

London Stock Exchange rules require investors to disclose when their holdings exceed the five per cent threshold.

The stake-building has put Sand Grove in a position to have an influence on developments at Bowleven, which is now based in London.

Former chief executive Kevin Hart and four other directors were voted off the board in March following a campaign for change led by the Crown Ocean Capital investment firm.

Bowleven last month parted company with two members of the management team appointed following the vote.

The firm said then chairman Chris Ashworth had stepped down after being told that the continuing directors would propose a resolution for his removal as chairman, and as a director, at the next board meeting. It has yet to appoint a new chairman.

Some 88.45 per cent of votes cast at last month’s general meeting opposed Joe Darby’s re-election as a non-executive director.

Turnaround expert Eli Chahin was appointed chief executive after being voted on to the board in March.

Crown Ocean has a 28.2 per cent interest in Bowleven shares. US giant Merrill Lynch International disclosed recently it has a 5.001 per cent interest.

Led by hedge fund veteran Simon Davies, Sand Grove says it follows an event driven investment strategy.