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.

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