Mark Denning departed Capital Group five days after the asset manager was approached with claims that he had used a “secretive fund” to personally invest in some of the same businesses supported by funds he helped to manage on behalf of clients, according to a documentary to be screened tonight.
The claims, which suggest ordinary investors were exposed to serious conflicts of interest, are the latest blow to the fund management industry, which is under close scrutiny after the scandal surrounding Neil Woodford, the former star stockpicker.
The BBC’s Panorama alleged Mr Denning, 61, used a fund based in Liechtenstein, called Morebath Fund Global Opportunities, to buy the shares. The fund appeared to be named after the village of Morebath in Devon, where he owns a nine-bedroom house, Panorama said.
Front running your book is a bad idea in the first place. But to then provide such obvious evidence linking you to it is just stupid.