Probe Into Arrested Hedge Fund Managers Ends

Dec 9 2013 | 11:03am ET

Three hedge fund managers arrested by British authorities in February will not face criminal charges.

The U.K. Financial Conduct Authority said Friday that it had dropped its probe into Lodestone Natural Resources co-founders Carl Linderum and Tim Whyte and former GLG Partners portfolio manager Carl Esprey. The trio were picked up on suspicion of insider trading on Feb. 27, were questioned and had their homes and offices searched.

"Carl is delighted the case has been dropped and feels it’s a reflection of the evidence that the case has been discontinued," Linderum's lawyer, Elizabeth Robertson, told Financial News.

"I am pleased that after a thorough investigation by the FCA I have been completely cleared of any inappropriate behavior," Whyte added. "Despite an extremely traumatic few months, I would like to thank the FCA for resolving the case quickly and clearing my name."

The traumas included the death of Lodestone, the two-year old hedge fund founded by Linderum, Whyte and Ben Belldegrun, who formerly worked together at Brevan Howard Asset Management. The US$100 million firm liquidated in May.

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