Hedge Fund Boss Said To Have Been Near To Tears
The fund is said to have racked up losses on around $1m in July (losing 8% of its value in the first week), after a difficult June, and last week the remaining assets were acquired by Citadel Investments.
An at times emotional Larson said that 'this is extremely difficult. You entrusted us with the management of your money, and we lost a lot of it to say the least.....No apology is sufficient, but I want you to know how profoundly sorry and deeply pained I am about what has happened...We have always felt that we have a special relationship with, and concern for, our investors and I know this experience has harmed not just our clients, but our friends (too)'.
And some of the big boys seem to have taken a bath in the markets last month too. Financial News reports that Goldman's flagship Alpha fund also dropped almost 8% in a week last month.
Finally, The Sunday Times reports that Stephane Carnot, the co-founder of London-based hedge fund Tisbury Capital, has been ousted from the firm after his fellow founder Gerard Griffin reported him to UK market regulator The Financial Services Authority for alleged improper conduct.
The newspaper quotes from a letter to investors recently sent by Griffin which said that the firm had uncovered some 'unauthorised personal account transactions by Mr Carnot'. The letter goes on to say that 'Stephane Carnot will be leaving the firm with immediate effect. I simply wanted to say that we expect the highest standards from each and every one of our people and there can be no exceptions to this principle'.