Hong Kong-based hedge fund Segantii is returning capital to its investors amid accusations of insider trading.
Segantii Capital Management told investors it will return their money, according to a «Financial Times» report citing a statement.
«We have always believed at Segantii that it is a great responsibility and privilege to professionally manage money and we have never taken that lightly,» a spokesperson for the hedge fund said. «We have decided, however, that at this time, it is in the best interests of our investors to return their capital in an orderly manner.»
Potential Fund Shutdown
Separately, an unnamed source in the «Financial Times» report also said that employees were told that the decision to return capital to investors could also result in the fund shutting down.
Earlier this month, Hong Kong’s Securities and Futures Commission said it had commenced criminal proceedings against Seganti founder and chief investment officer Simon Sadler as well as former employee Daniel LaRocca over accusations of insider trading. After the two appeared in a local court, they were released on cash bail with the case adjourned to June 12.