Davy-sponsored fund probed

A DAVY Stockbrokers sponsored $900 million hedge fund, listed on the Irish stock exchange, is being investigated by the US securities and exchange commission following allegations that the value of the fund reported to investors was inflated.

US hedge fund giant Clinton operates the Trinity fund at the centre of the investigation. The Trinity fund is Clinton's flagship fund in its six fund $9.1 billion hedge fund business.

A Clinton senior trader, Tony Barkan, quit last month making allegations that his employer was overstating the value of a number of funds it operated to investors.