A UK hedge fund investor in Babcock & Brown Capital has attacked the underperformance of the listed investment fund's shares, and is demanding it is either wound up or disposes of its stake in Irish telecoms group Eircom and returns A$426m (€253m) to shareholders.

Pendvest, an affiliate of the London-based Capvest investment vehicle set up by Irish financier Seamus Fitzpatrick, last week revealed it has raised its stake in Babcock & Brown Capital to above the 5% threshold at which investors can requisition a shareholder vote under Australian law.