GLG Fined For Inflated Valuation

Dec 13 2013 | 5:30pm ET

GLG Partners has agreed to pay US$9 million to settle claims that it inflated the value of a stock purchased by former star manager Greg Coffey.

According to the Securities and Exchange Commission, the London-based firm, part of the Man Group, overvalued a coal-mining stock, earning it $7.8 million in extra fees. The SEC did not identify the stock, but Bloomberg News reports it was Sibanthracite, one of the last names Coffey purchased before resigning from GLG in 2008. The holding wound up in an illiquid side-pocket GLG set up during the financial crisis.

"Investors depend upon fund advisers to have proper controls in place to ensure that valuations and fees are not inflated," the SEC's Antonia Chion said.

In addition to reimbursing investors the $7.8 million, GLG will pay a $750,000 fine.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note