Mere months after former GLG Partners hedge fund manager Philippe Jabre was fined £750,000 by the Financial Services Authority, he is reported to be launching a new hedge fund in Geneva. The FSA hit Jabre with the largest fine ever charged to an individual for alleged insider trading linked to 2003 trades to unload Sumitomo Mitsui shares. The New York Times reports. Now, reports have surfaced that as early as next week Jabre will make an announcement about his new venture, for which he has already hired roughly half his staff of 25, BreakingViews reports. Jabre aims to raise about $2 billion to administer among three funds: a multi-strategy hedge fund based on convertible arbitrage, Jabre’s specialty; a long-only equity fund; and a long-only convertibles fund, BreakingViews notes. It is projected that Jabre’s new company will charge a 2% management fee, and a 20% performance fee. Though Jabre ultimately abandoned his plans to appeal the FSA charges and is not licensed to trade in London, The Wall Street Journal reports many similar cases in the past where positive returns overpowered federal charges. According to the Times, Jabre’s management from 1998 to 2004 resulted in returns in excess of 20%. Jacob Schmidt of Schmidt Research Partners reiterated Jabre’s prior successes when speaking to the WSJ, noting that fund performance often helps individuals like Jabre brush charges aside and move on, “Somebody who has top performance, investors are probably more lenient when it comes to their weaknesses.”
