’s share price surged yesterday after the retailer revealed that a US hedge fund had taken a stake in the business.

Investment firm Ruane, Cunniff & Goldfarb took a 5.4% interest in the online electricals retailer last week.

The US firm’s flagship Sequoia Fund’s investments include companies in the pharmaceutical and financial sectors. 

Last month Ao reported a first-half loss despite an increase in sales. Operating losses came in at £8.9m due to investments in its German operations and other start-up costs in Europe.

However boss John Roberts said it is making “good progress”.

Ao’s share price initially jumped 7.2% to 174.60p yesterday, but closed at 169.90p.