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Segantii Capital Management Closing

Segantii Capital Management Closing

Trading & Investing

British Hedge Fund Founder and Blackpool FC Owner Simon Sadler Charged with Insider Trading in Hong Kong

Simon Sadler, the founder of Segantii Capital Management Ltd. and owner of Blackpool Football Club, is currently facing insider trading charges in Hong Kong.

As a result of the allegations, Sadler’s $4.8 billion hedge fund faces its finality. Sadler & Segantii see the conclusion for what was one of Asia’s largest and most respected hedge funds.

Segantii Capital Management: A Journey from Startup to Powerhouse

Established in 2007 in Hong Kong, Segantii Capital Management transformed from a small startup into a major player in the hedge fund industry, especially noted for its proficiency in block trades. Over the span of 17 years, Sadler, 54, amassed a fortune of at least $360 million, according to Bloomberg.

However, the fund’s remarkable growth is now marred by insider trading accusations. Hong Kong authorities have charged Segantii, Sadler, and a former employee with insider dealing.

Moreover, this case is considered the city’s most significant hedge fund trial since Bill Hwang’s trading ban at Tiger Asia Management more than ten years ago. The maximum penalty for insider trading in Hong Kong can be up to 10 years in prison and hefty fines.

In light of the charges, major financial institutions, including JPMorgan Chase & Co. and Nomura Holdings Inc., have started to reduce their exposure to Segantii.

The hedge fund had previously listed nine banks as its prime brokers in a March update, such as JPMorgan, Goldman Sachs Group Inc., BNP Paribas SA, and UBS Group AG.

In response to the legal issues, Segantii Capital Management has decided to return capital to its investors, effectively ceasing operations. A spokesperson for Segantii stated, “It is in the best interests of our investors to return their capital in an orderly manner,” highlighting the seriousness of the charges and the firm’s dedication to its investors during this challenging time.

  • Sadler became recognized for his ownership of Blackpool Football Club, a team he has supported since childhood.
  • Segantii used a multi-strategy investment approach and will sadly send employs 151 people worldwide packing.

As Segantii winds down, the consequences of the insider trading charges against Sadler and his hedge fund are still unfolding. The outcome of this case will not only influence Sadler’s legacy but also serve as a crucial reminder of the regulatory and ethical responsibilities within the financial sector.

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Segantii Capital Management Closing