Charlotte Observer – When hedge fund Mangan & McColl Partners sent its regular update to investors this month, the firm left out a significant event: One of the partners had been sanctioned byregulators.
Instead, the Jan. 19 letter stuck to a routine rundown on performance.
In December, firm partner John Mangan Jr. reached a $125,000 settlement with regulators over charges of improper trading of a private securities offering, stemming from actions in 2001 when he was with another firm. He also was barred from the brokerage industry.
The hedge fund, whose other partner is Hugh McColl III, son of the former Bank of America chief, has said the settlement will not limit its business. But it’s unclear how investors have reacted to the sanctions.
Hedge funds are loosely regulated investment pools for wealthy investors and institutions, and little information is public about their workings.
In a statement delivered by spokesman Steve Luquire, the firm told the Observer that it keeps “all matters relating to our clients in the strictest confidence and therefore cannot respond to your questions.”
“We have kept our clients informed and will continue to do so. We are proud of our firm and our relationship with our loyal customers.”
