Ex-fund manager claims company founder bullied him, called him a 'moron'

Former PM at New Star Asset Management suing fund firm's boss; 'angry, antagonistic and unpleasant'
OCT 27, 2011
Patrick Evershed, a former New Star Asset Management Holdings Inc. fund manager, was bullied by company founder John Duffield and called a “criminal” and a “moron,” Evershed's lawyer said. The hedge fund manager is suing New Star for unfair dismissal at a London employment tribunal. His lawyer, Daphne Romney, said at the first day of trial today that he was subjected to “a very unpleasant environment.” Duffield “called the fund managers morons and criminals,” including Evershed, Romney said. He “asked if they were ashamed of themselves when their funds performed poorly” and was “angry, antagonistic and unpleasant.” Evershed was suspended by the fund's chief executive officer, Howard Covington, in 2008, shortly after writing a letter to New Star's human resources department complaining of Duffield's conduct. In the letter, Evershed said Duffield “has been most vile to most of the fund managers for several years and bullying us.” Evershed later resigned and sued the fund in October 2008. Evershed said he joined New Star in 2002, after being recruited by Duffield, under the agreement that his fund, New Star Select Opportunities Fund, wouldn't exceed investments of 50 million pounds ($80 million). He said the limit was critical to its success, according to an appeals court judgment from last year that permitted him to pursue the claims. New Star was bought by Henderson Group Plc in 2009 for about 107 million pounds 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 pounds. The trial is scheduled to last 10 days. A request for comment to New Star's law firm, Olswang LLP, wasn't immediately returned. --Bloomberg News--

Latest News

NFL referee Shawn Hochuli doubles as LPL-affiliated financial advisor
NFL referee Shawn Hochuli doubles as LPL-affiliated financial advisor

Second-generation NFL ref Shawn Hochuli co-founded IWM Partners in Irvine, California, a wealth management practice with more than $500M in client assets

SEC bars NY advisor who allegedly defrauded elderly client of $2.4 million
SEC bars NY advisor who allegedly defrauded elderly client of $2.4 million

U.S. seniors lose $28.3 billion annually as a result of financial exploitation, according to a 2023 AARP study.

Cerity Partners adds Bay Area, Minneapolis firms in latest double-deal
Cerity Partners adds Bay Area, Minneapolis firms in latest double-deal

Cornerstone Capital and Echo Wealth Management add about $1.7 billion as RIA M&A heads for a record year.

Fake signals, frozen accounts: SEC sues crypto AI platform over $12.5M
Fake signals, frozen accounts: SEC sues crypto AI platform over $12.5M

Bogus SEC filings, WhatsApp groups, and AI trading signals that never existed

Third Circuit scraps 30-year stock-price test in securities fraud case
Third Circuit scraps 30-year stock-price test in securities fraud case

A decades-old materiality shortcut is dead in the Third Circuit

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains