Ex-BlueCrest Manager Fined, Banned For Overvaluing Positions

Apr 30 2009 | 9:34am ET

A former hedge fund manager at BlueCrest Capital Management has been banned by British regulators for deliberately overvaluing his fund’s positions.

Loic Albert Antoine Montserret was also fined £35,000 (US$52,000) by the Financial Services Authority. The regulator said Montserret feared for his job security when his part of the BlueCrest Multi-Strategy Fund took a big hit in April. So he inflated the value of four equity index options, the FSA said, and only confessed to his trading desk’s chief 10 days later.

“Market professionals cannot resort to mismarking whatever the circumstances,” Margaret Cole, the FSA’s enforcement chief, said. “Montserret’s behavior fell short of the standards expected from approved persons and showed a lack of integrity and honesty.”

BlueCrest, which manages some US$13 billion, said it supported the FSA probe and noted that Montserret’s behavior had no impact on investors.

Montserret, who qualified for a 30% reduction in his fine for agreeing to settle the case early, has said he will not appeal the FSA decision.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR