French authorities clear Boussard & Gavaudan co-founder of insider trading

French regulators have cleared one of the founding partners of hedge fund Boussard & Gavaudan of charges relating to allegations of insider trading, clearing a cloud that has hung over the group for two years.

Emmanuel Boussard as well as Boussard & Gavaudan Gestion S.A.S. were discharged from all alleged breaches of French insider trading regulations by the French Market Authority.

The B&G Gestion arm has played an advisory role to the UK-based asset management division of the group, a €1.2bn operation founded by Emmanuel Boussard and Emmanuel Gavaudan.

At the time, the group said little, but that the allegations related to a “single transaction of a notional value of €1.06m”.

BGG provides services and advice to BGHL as investment manager Boussard & Gavaudan Asset Management, which manages the group’s flagship Sark Fund. Neither BGHL, BGAM nor Sark received any notification at the time of allegations from the AMF.

B&G denied the AMF’s allegations and said it would fight them.

It said: “It firmly believes that its conduct has been and remains in conformity with market regulations and will now be in a position to address the AMF s interpretation with its explanation of the facts at hand. BGG has indicated that it will contest these allegations before the Commission of the AMF which will decide whether to impose fines after due hearing of the parties.”

The group received prominence by listing as a single manager hedge fund on Euronext back in 2006. Its flagship fund was the Sark fund.

Other products within the group include the BG Master Fund, a multi-strategy vehicle incorporated in Ireland, and the BG Long Term Value fund, an equity vehicle registered in France.

Before founding B&G, Boussard worked at Goldman Sachs International from 1996 to 2002, and was an executive director at GSI in Paris. He also worked at Bankers Trust International.

Emmanual Gavaudan, who was not named as part of the AMF’s long-running investigation, also worked at Goldman Sachs, both in London and Zurich, before co-founding B&G.

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