Tisbury’s Carnot Out Following ‘Unauthorized’ Trading Allegations

Aug 6 2007 | 9:00am ET

Tisbury Capital co-founder Stephane Carnot has been forced out due to alleged misconduct levied by his fellow co-founder, Gerard Griffin.

Griffin reported what he called “unauthorized” personal trading to the Financial Services Authority.

In a letter to investors, seen by the Sunday Times, Griffin said Carnot broke a Tisbury rule by failing to keep the London hedge fund’s compliance office fully appraised of his trades, though he apparently did not violate any securities laws.

In the letter, Griffin wrote to investors, “I wanted to draw to your attention that Stephane Carnot will be leaving Tisbury 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.”

Griffin added that “outside counsel” will conduct a “full inquiry” into alleged “unauthorized personal account transactions by Mr. Carnot.”

The Times reports that Carnot’s ouster is the endgame of what had become a bitter power struggle within the firm.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of