Meanwhile investors pledge to stick by the hedge fund while it weathers the scandal (17% returns will do that).

Via Reuters:

Investors to stick with hedge fund GLG

By Pratima Desai
and Alistair MacDonald
Reuters (London)
March 3, 2006

Fines imposed on hedge fund GLG, for charges related to market abuse, will not enhance public opinion of hedge funds but unfazed investors said they would not pull money from the firm.

The hedge fund, which has around $11.5 billion (6.6 billion pounds) under management and is Europe's largest non-listed hedge fund, makes too much money to be cold shouldered by investors, they say.

The Financial Services Authority is set to find GLG senior trader Philippe Jabre guilty of market abuse and violating market conduct, according to a source. GLG is expected to share the blame for not properly monitoring Jabre's activities...

More here.

Curiously, our friend, Mr. Fink from Man Group did not appear to mention the GLG matter in his recent comments about hedge fund fraud being a North American issue.

-- MDT

Labels: Philippw Jabre