Former fund manager says firm's founder bullied him, called him a 'moron'

Patrick Evershed, a former New Star Asset Management Holdings Inc. fund manager, was bullied by company founder John Duffield, who called him a “criminal” and a “moron,” according to Mr. Evershed's lawyer. The hedge fund manager is suing New Star for unfair dismissal at a London employment tribunal. His lawyer, Daphne Romney, said during the first day of trial last Monday that he was subjected to “a very unpleasant environment.” Mr. Duffield “called the fund managers morons and criminals,” including Mr. Evershed, Ms. Romney said. Mr. Duffield also “asked if they were ashamed of themselves when their funds performed poorly,” and was “angry, antagonistic and unpleasant,” Ms. Romney said. Mr. Evershed was suspended by the fund's chief executive, Howard Covington, in 2008, shortly after writing a letter to New Star's human-resources department complaining about Mr. Duffield's conduct. In the letter, Mr. Evershed wrote that Mr. Duffield “has been most vile to most of the fund managers for several years and bullying us.” Mr. Evershed later resigned and sued the fund in October 2008. Mr. Evershed said that he joined New Star in 2002, after being recruited by Mr. Duffield under the agreement that his fund, the New Star Select Opportunities Fund, wouldn't exceed investments of £50 million ($80 million). Mr. Evershed said that the limit was critical to its success, according to an appeals court judgment from last year that permitted him to pursue the claims. Henderson Group PLC bought New Star in 2009 for about £107 million in cash and stock after the contraction in the credit markets, hobbled by a loan it took out to fund a shareholder payout. Most U.K. unfair-dismissal claims are capped at about £65,000. The trial is scheduled to last 10 days. A request for comment to New Star's law firm, Olswang LLP, wasn't immediately returned.