Bloomberg – Weavering Capital (UK) Ltd. founder Magnus Peterson’s deliberate “dishonesty” caused the collapse of his $600 million hedge fund, U.K. prosecutors told a London court on the trial’s opening day.
Peterson told investors he was following a low-risk strategy, but within a few days of its start the fund had lost more than 20 percent of its value, according to Amanda Pinto, a lawyer for the Serious Fraud Office. Rather than stopping, he changed the strategy and lied to investors, she said, disputing that it was due to “bad luck or incompetence.”
