F&C Faces £12M Bill After Losing Battle With Hedge Fund Managers

Jul 14 2011 | 12:14pm ET

Two hedge fund managers have won their case over a "doomed" joint-venture with F&C Asset Management.

A British High Court ruled in favor of François Barthelemy and Anthony Culligan, who accused F&C of seeking to kill their fund of hedge funds partnership, F&C Partners, after the collapse of Lehman Brothers. F&C, Barthelemy and Culligan had set up the limited liability partnership seven years ago.

The two men accused F&C of beginning to wind down the partnership without so much as consulting them to avoid having to buy out their potential 40% stake in the venture. F&C had sought to prevent Barthelemy and Culligan from exercising their put options that would give them that stake.

Now, the fund manager may have to buy Barthelemy and Culligan's stake for £7.4 million, as well as pay their legal costs, which F&C believes no more than £4.5 million, the asset manager said. While less than the £40 million that Barthelemy and Culligan sought, it is substantially more than the £2.4 million F&C had put aside to cover an adverse decision in the case.

F&C's own legal bills in the case amount to £1.7 million.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.