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 Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow's Evenlode Income fund was recently removed from the Investment Association's UK Equity Income sector.

Play GAM charity football tournament: the live draw

GAM charity football tournament: the live draw

Former Chelsea and England footballer Graeme Le Saux visits Citywire to make the draw for the tournament, where all proceeds going to Wheels for Wellbeing.

Play FIFA, Panama Papers…and what everyone’s getting wrong

FIFA, Panama Papers…and what everyone’s getting wrong

VIDEO: Investigative reporter Jeffrey Robinson reveals how major corruption scandals are being mishandled and what to expect next.

Your Business: Cover Star Club

Profile: JPM Wealth MD on breaking the glass ceiling

Profile: JPM Wealth MD on breaking the glass ceiling

During her tenure at JP Morgan, the private bank has changed the way it segments clients in a bid to improve focus

Wealth Manager on Twitter