Two From Lodestone Arrested In U.K. Insider-Trading Probe

Mar 13 2013 | 1:43pm ET

Two employees of Lodestone Natural Resources, including one of its founders, were among the three hedge fund employees arrested on suspicion of insider-trading by British authorities last month.

Carl Linderum and an unidentified Lodestone staffer were brought in for questioning on Feb. 27, the Financial Times reports. Both were released on bail without being charged, pending further investigation.

The third man arrested was previously identified as GLG Partners portfolio manager Carl Esprey.

The U.K. Financial Services Authority has said that probe of Linderum and Esprey is not related to any of its past insider-trading investigations.

Linderum founded Lodestone in 2011 with two other former Brevan Howard Asset Management and Sofaer Capital veterans, Ben Belldegrum and Tim Whyte. The US$100 million firm was run as a division of Althea Capital, which Linderum served as a partner. Althea is led by former Tudor Investment Corp. trader James Harpel and former SAC Capital Advisors European chief operating officer Kenneth Ginsburg.

Linderum's registration with the FSA was suspended on Feb. 28, the day after his arrest.

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