diff --git a/hgext/lfs/wrapper.py b/hgext/lfs/wrapper.py
index 97bdbcb43ebf898b582362fdd9ba492247071f08_aGdleHQvbGZzL3dyYXBwZXIucHk=..b91bca85ba73c5a755a9e4ae44aaeb787ee3fae2_aGdleHQvbGZzL3dyYXBwZXIucHk= 100644
--- a/hgext/lfs/wrapper.py
+++ b/hgext/lfs/wrapper.py
@@ -131,8 +131,7 @@
 
     lfstrack = self.opener.options['lfstrack']
 
-    # Always exclude hg owned files
-    if not self.filename.startswith('.hg') and lfstrack(self.filename, textlen):
+    if lfstrack(self.filename, textlen):
         flags |= revlog.REVIDX_EXTSTORED
 
     return orig(self, text, transaction, link, p1, p2, cachedelta=cachedelta,
diff --git a/tests/test-lfs.t b/tests/test-lfs.t
index 97bdbcb43ebf898b582362fdd9ba492247071f08_dGVzdHMvdGVzdC1sZnMudA==..b91bca85ba73c5a755a9e4ae44aaeb787ee3fae2_dGVzdHMvdGVzdC1sZnMudA== 100644
--- a/tests/test-lfs.t
+++ b/tests/test-lfs.t
@@ -18,9 +18,7 @@
 # Commit small file
   $ echo s > smallfile
   $ echo '**.py = LF' > .hgeol
-  $ hg --config lfs.track='size(">1000B") | "path:.hgeol"' commit -Aqm "add small file"
-  $ hg debugdata .hgeol 0
-  **.py = LF
+  $ hg --config lfs.track='size(">1000B")' commit -Aqm "add small file"
 
 # Commit large file
   $ echo $LONG > largefile
@@ -976,6 +974,7 @@
 
   $ cat > .hglfs << EOF
   > [track]
+  > path:.hglfs = none()
   > **.test = size(">5B")
   > **.exclude = none()
   > ** = size(">10B")