Guardian Unlimited – One of the City’s best known but most publicity-shy hedge funds and one of its top traders have been fined a combined £1.5m following a two-year investigation by the Financial Services Authority.
The fines of £750,000 apiece have been handed to Philippe Jabre and GLG, the hedge fund group from which Mr Jabre is currently “on leave of absence”.
Mr Jabre has been found to have committed market abuse and the firm not to have monitored him properly. The investigation by the City watchdog, which is keen to crack down on abuses by hedge funds, is believed to have focused on information received by Mr Jabre about a convertible bond issue by Japan’s Sumitomo Mitsui Financial.
Mr Jabre is thought to have been sounded out about his interest in buying the bonds, as is common practice in the City, but had, unusually, traded on the information.
