LONDON-based hedge fund GLG Partners has agreed a $9m settlement with US regulators as part of an investigation into assets the fund said were worth $160m more than they actually were.
GLG bought an unnamed coal mining firm in late 2007 for $210m which it valued at $425m just four months later in March 2008. As a result GLG charged its clients higher fees than it should have.
“GLG’s pricing committee did not have the information and time it needed to properly value assets,” said Securities and Exchange Commission Division of Enforcement associate director Antonia Chion.
Matthew Dontzin, partner at Dontzin Nagy & Fleissig representing GLG, said, “GLG is pleased that this matter was resolved, and the firm remains fully committed to maintaining robust policies, procedures and practices in line with market conventions.”