Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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 Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter