New York (HedgeCo.Net) – The founder of the Northern & Shell media group which publishes sex and celebrity magazines is suing GLG, one of Man Group’s hedge funds, “for losses on an investment he (Richard Desmond) said was too complex to understand,” the San Francisco Chronicle reports.
Richard Desmond is suing the hedge fund for up to 20 million pounds ($33 million). Desmond said that GLG failed to warn him about “unpredicted, unpredictable or unmanageable losses.” He has also sued Credit Suisse over the same deal last year.
The Chronicle reports: “Desmond invested about 50 million pounds in a product referred to as Constant Proportion Portfolio Insurance, a type of swap, according to his GLG claim. When he asked for the investment to be unwound during the market turmoil of 2008, he lost about 20 million pounds, he said in the lawsuit.
According to Forbes Magazine, the publisher has an estimated net worth of $1.9 billion as of March 2013. He is #792 in the World Billionaires List (#804 in 2012), and #25 in the United Kingdom. He has also owned more than 40 adult entertainment publications that he sold in 2004.
GLG responded by saying that Desmond is a “sophisticated investor with significant prior experience of investing in hedge funds and structured products.”
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