Guardian Invested Millions in Hedge Funds During Banking Crisis Editor Rusbridger on Board Which Approved Strategy

Earlier this month the Guardian front paged a story revealing that the City of London accounted for £11.4 million of the Conservative Party’s funding in 2009 – 10, in lurid terms we learned of the millions passed to Tory coffers by rich hedge fund managers. Guido can reveal that during that same period the Guardian Media Group’s coffers gained £39.3 million from investments in hedge funds. More than three times as much as they castigated the Tories for taking from hedgies…

GMG owns the Guardian and Observer newspapers, where journalists and columnists rail against the City, hedge funds and the short-termism of pin-striped financial traders. Documents obtained by Guido reveal that the GMG board approved investments now totalling £223.8 million in speculative funds in a range of assets. Alan Rusbridger, editor of the Guardian, sat on the board which approved the hedge fund investment plan, the board was at the time chaired by Paul Myners who also sat on the board of GLG partners, a hedge fund which is widely reported to have made big profits shorting UK banks.

The funds are traded by a number of specialist fund managers, overseen by the giant U.S. based asset manager Cambridge Associates. Cambridge Associates is a secretive, privately held firm with a client list which includes billionaires and government sovereign wealth funds. Guido has discovered that the £223.8 million is invested in emerging markets, bonds and hedge funds. The investments are principally in US Dollars and offshore from the UK.

In the small print of GMG’s 2009 Accounts

These short-term funds are in addition to the GMG assets held in Cayman Islands domiciled corporations where the rate of corporation tax is zero. Sources suggest that GMG has between £300 million and £500 million held offshore in these opaque special purpose vehicles. Such tax haven domiciled corporate vehicles are used to shield assets from tax. Guido has discovered that one GMG controlled Caymans corporation was incorporated as recently as March 2008, a mere 5 months before the banking crisis wreaked havoc on the global economy.

So far GMG has ignored embarrassing questions posed since the winding up of the old Scott Trust. What Guido and many confused Guardian readers would like to know is how the use of these opaque investment vehicles is compatible with the public positions taken by the newspapers and even members of the board. Will Hutton for example is a former editor of the Observer who sits alongside Alan Rusbridger on the board of the Scott Trust Foundation. Is Hutton, a noted campaigner against hedge funds, comfortable with GMG having hundreds of millions in assets both offshore and invested in hedge funds? Are the perennially loss making Guardian newspaper’s columnists like Polly Toynbee happy to have their six-figure salaries paid out of the profits of hedge fund raids on the currencies of emerging market countries? Isn’t it about time the Guardian’s senior executives explained openly and honestly to its readers how it really survives despite losing money every year?




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Noel Gallagher on Brexit:

“In England, the Brexit thing, it’s like, I can’t believe there’s so much noise about it… It was put to the people as a vote, the people voted. That’s democracy. F***ing get over it.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Royal Mail’s Tweets Deliver Truth About Nationalisation Royal Mail’s Tweets Deliver Truth About Nationalisation
Jez “Doesn’t Do Dinners” Jez “Doesn’t Do Dinners”
New Tory Slogan: Building a Britain Fit for The Future New Tory Slogan: Building a Britain Fit for The Future
Unilad Deleted From Facebook Unilad Deleted From Facebook
Disgraced Gay Times Editor Is Labour Member Disgraced Gay Times Editor Is Labour Member
Yasmin Alibhai-Brown: “I’d Rather Be Mugabe Than May” Yasmin Alibhai-Brown: “I’d Rather Be Mugabe Than May”
Corbynista Rulebook Saves Lansman’s NEC Dream Corbynista Rulebook Saves Lansman’s NEC Dream
70 Million Reasons BuzzFeed Won’t Go Public 70 Million Reasons BuzzFeed Won’t Go Public
Sun Coffee Run to Broadcasting House Sun Coffee Run to Broadcasting House
Teething Problems for Salmond’s RT Show Teething Problems for Salmond’s RT Show
Hammond to Deliver “Real Action” on Housing in Budget Hammond to Deliver “Real Action” on Housing in Budget
Dods Shard Offices Infested With Maggots Dods Shard Offices Infested With Maggots
Nelson’s Back Nelson’s Back
Nasreen Khan Resigns Nasreen Khan Resigns
Young Liberals Condemn Cable For Defending Rennard Young Liberals Condemn Cable For Defending Rennard
Brexodus Was Bogus Brexodus Was Bogus
McDonnell Now Sure There Won’t Be a Run on The Pound McDonnell Now Sure There Won’t Be a Run on The Pound
Shadow Minister: “I Don’t Know” Why Corbyn Hasn’t Suspended Dent Coad Shadow Minister: “I Don’t Know” Why Corbyn Hasn’t Suspended Dent Coad
Byline Outs Russian Troll But It’s a Security Guard from Glasgow Byline Outs Russian Troll But It’s a Security Guard from Glasgow
Emma Dent Coad on “Fake Bake”, “Homies” and “Bluds” Emma Dent Coad on “Fake Bake”, “Homies” and “Bluds”