Hedge fund Pharo has filed a lawsuit against its Knightsbridge landlord over disruptive building works that allegedly interfered with its trading operations. The macro specialist, which manages $8.3bn in assets, claims excessive noise and vibration from renovations at its London headquarters opposite Harrods made working conditions intolerable.

The dispute centers on a building owned by Knightsbridge Commercial Estates, a UAE-backed entity. Pharo pays over £500,000 annually in rent for the 22,000-square foot office where it employs 70 people. According to court documents, the building works triggered fire alarms through excessive dust, caused extreme temperature fluctuations, and disrupted crucial communications between portfolio managers and traders.

Pharo's legal complaint details how noise from drilling and jackhammering repeatedly interrupted business operations and investor meetings. The hedge fund, led by former Merrill Lynch trader Guillaume Fonkenell, claims it has video evidence of the disturbances. The case highlights the challenges faced by financial firms operating in central London's aging office buildings, where renovation works are common but can create significant operational disruptions for neighboring tenants.