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

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 Kames' CIO: US bowed to international pressure

Kames' CIO: US bowed to international pressure

Stephen Jones, chief investment officer of Kames Capital, said the US domestic economy passed the test, but international concerns weighed heavy.

Play Sector Spotlight: Thomas Miller's Jordan Sriharan on bonds

Sector Spotlight: Thomas Miller's Jordan Sriharan on bonds

With the US interest rates on hold for now, we suss out how wealth managers are managing their fixed income exposure in this environment.

Brewin's Foster: debating 'Corbynomics'

Brewin's Foster: debating 'Corbynomics'

This week Brewin Dolphin's head of research discusses Jeremy Corbyn's policies and their economic impact 

Wealth Manager on Twitter