Smart Hedge Fund

Philippe Jabre To Open New Hedge Fund In Switzerland

The prominent hedge fund manager Philippe Jabre is creating a new life in Geneva after fined by the British authorities. For hedge fund investors, it might be too much to take a leap of faith and bet on one individual for consistent returns, though.

Philippe Jabre, a prominent former hedge-fund manager at GLG Partners LP, has arranged financial backing to open a large hedge fund in Geneva, away from the U.K.'s market regulator that fined him for market abuse in February, a person familiar with the matter said.

The fund, which could raise more than $2 billion, has commitments from investors and will be backed by at least one bank, the person said. Swiss bank UBS AG will act as the fund's prime broker, according to the person familiar with the matter.

In February, Britain's Financial Services Authority fined Mr. Jabre and GLG £750,000 ($1.4 million) each in connection with improper trading in the securities of Sumitomo Mitsui Financial Group Inc. Mr. Jabre appealed the FSA ruling but later withdrew his appeal. The FSA found that Mr. Jabre had violated rules relating to market conduct and "due skill, care and diligence" in trading after receiving confidential information from an investment-banking salesman.

Mr. Jabre isn't looking to immediately reapply to the FSA for his license to trade in London, Europe's hedge-fund capital, the person said. He will be allowed to trade in Geneva without the FSA's blessing. Mr. Jabre's new firm will launch three funds making convertible bond and share investments. Mr. Jabre's plans to open a firm in Geneva were reported by Internet-based news service breakingviews.com. A spokesman for Mr. Jabre said Mr. Jabre was unavailable for comment.