The U.K.'s Financial Service Authority is said to be switching gears and focusing on potential insider-trading activity by Philippe Jabre, manager of the GLG Market Neutral Fund, rather than "systems and control violations," the Financial Times reports. Jabre, who late last year reportedly took a leave of absence from GLG Partners to defend himself against the accusations, is now the subject of an FSA investigation into whether he may have used privileged information regarding convertible bonds.
Meanwhile, Infovest21 suggests everything at GLG may not be all that it's reported to be. Articles in the FT, says Infovest21, appeared to put a "positive spin" on GLG, stating that an "independent accounting investigation" of the hedge fund turned up "no irregularities," but did not mention the name of the accounting firm. Nor would GLG provide Infovest21 with figures to support the assertion in an FT article headlined "GLG Best Year In Spite of Inquiry." Another FT article in June, says Infovest21, quotes a firm spokesman, in effect, denying there were any of the widely-rumored redemptions at the firm. Even InfoVest21 admits it is possible GLG recovered from its losses, "but without full transparent disclosure by GLG, performance cannot be confirmed."