Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Richard Desmond sues GLG over ‘incomprehensible’ investment

4 Comments
Richard Desmond sues GLG over ‘incomprehensible’ investment

Daily Express owner and Channel 5 boss Richard Desmond is taking legal action against GLG following an investment in which he lost almost £20 million, according to reports.

The case relates to a capital-protected swap linked to the performance of GLG’s funds, which Desmond (pictured) entered with Credit Suisse as a counterparty.

Desmond has already filed a suit against the Swiss bank, and he has now set his sights on GLG, which is owned by Man Group, too.

According to defence papers filed by GLG, seen by Bloomberg, Desmond’s lawyers have claimed the investment was ‘incomprehensible except to an expert’. They alleged that GLG failed to warn Desmond that there could be ‘unpredicted, unpredictable or unmanageable losses’.

GLG went on to describe Desmond as a ‘sophisticated investor with significant prior experience of investing in hedge funds and structured products’.

GLG further argued it had not advised Desmond on the investment. ‘Instead, in full knowledge of the risks associated with investing in hedge funds, Mr Desmond independently decided to enter into the transaction, having had the benefit of specialist advice and input from a team of skilled and experienced advisers,’ the hedge fund firm is reported to have said.

Man Group declined to comment.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter