Toomre Capital Markets LLC

Real-Time Capital Markets -- Analytics, Visualization, Event Processing, and Intelligence

WSJ: GLG Star Jabre Takes Leave Amid Inquiry

The Wall Street Journal has published a story on January 10, 2005 entitled “GLG Star Jabre Takes Leave Amid Inquiry” that has more information on the FSA investigation of GLG Partners and star hedge fund trader Phillipe Jabre. Toomre Capital Markets has previously posted on the FSA investigations into possible convertible bond issuance abuse here and here. The article includes the following quote which helps to explain why there is such focus on this case at one of Europe’s most prominent hedge fund groups:

“The [investigation] comes amid closer scrutiny of hedge funds world-wide, as these lightly regulated investment pools wield ever more market clout. Hedge-fund assets total nearly $1 trillion, double that of five years ago, and account for the bulk of daily activity in some segments of the securities markets. In recent years, some regulators have become concerned that hedge funds, which dole out hundreds of millions of dollars in trading commissions each year, may be exploiting their market clout to get an edge in ferreting out nonpublic information and trading on it. That concern has been intensified because hedge funds recently have had a tougher time generating blockbuster returns. As more hedge funds have opened, unique investment opportunities have dwindled.”