Gresham House, which runs a number of investment trusts, has suffered a blow after one of them voted against reappointing the alternative asset manager — after an unusual row with a former City property boss whose family controls almost half its shares.

LMS Capital, a £58m listed trust that makes private equity-style investments in smaller companies, voted against rehiring Gresham at a special meeting of shareholders on November 28, by 58% to 42%.