Hedge fund manager Christopher Gate has acquired 5% stake in stockbroker WH Ireland through his Oceanwood Global Opportunities Master Fund.

Gate has acquired almost 1.3 million shares in the business, worth nearly £900,000.

In December, the departure of WH Ireland’s chief executive, Paul Compton, has resulted in a share price fall of 28% in a day for investors.

Additionally, many senior managers followed his departure after an investigation into employees’ trading in the shares of other companies.

In due course, Compton has taken WH Ireland to court, alleging illegal dismissal, but last month he settled these claims with WH Ireland in a confidential agreement.

WH Ireland, which has been working to integrate Seymour Pierce, a private client business it purchased from administrators in February, has tipped the positive impact of this deal to become apparent next year.