Publications
Partners
The arrest of Glen Point Capital co-founder Neil Phillips for alleged foreign-exchange market manipulation threatened to ripple across the hedge fund industry as another firm suspended staffers who previously worked with him.
Phillips, 52, was arrested in Spain on a request from the US earlier this week, federal prosecutors in New York said Thursday in a statement. Kirkoswald Asset Management put on leave several employees who used to work at London-based Glen Point and Balyasny Asset Management let go some former Glen Point staff who had joined the firm recently, according to people with knowledge of the matter.
A person familiar with the matter said Kirkoswald was awaiting more information and stressed that the firm had no reason to believe the employees were involved in the alleged market manipulation. But similar caution may emerge elsewhere on Wall Street and within the Square Mile, where Phillips was associated with some of the biggest names in the hedge fund universe.
Phillips was charged with conspiring to manipulate the US dollar-South African rand exchange rate in late 2017. The indictment, which was returned in March but previously sealed, describes at least two co-conspirators, raising the possibility of charges against more people.
