The co-founder of Absolute Capital Management has sold most of his stake in the UK-listed hedge fund manager just days after reassuring investors he remained its biggest shareholder and would continue to fight for shareholder value in a shock resignation letter that sent the company's shares plunging.

Florian Homm, whose resignation was communicated to Absolute Capital's shareholders and investors in a devastating open letter last Tuesday that sent the company's shares diving from 390p each at the previous day's close to 50.5p, or 87%, by the end of trading last week, offloaded 10 million shares on Friday.