Field Pickering, a lawyer for Vulpes, and Tudor spokesman Patrick Clifford declined to comment on the case.
Rule Changes
In early 2012 negotiations with Lycalopex, Merrill Lynch trader Raj Patel allegedly told the firm: “I can’t do $20 million, but I will definitely get you to $15 million,” according to the Lycalopex documents. The firm says Merrill Lynch didn’t execute enough trades or provide enough leverage to reach that target.
France introduced a financial-transactions tax in August 2012 to curb market speculation by imposing a levy on share purchases. Lycalopex said Merrill Lynch ended the relationship without making a proper attempt to make the trading strategy compliant with the new rules.
Paul Tudor’s company, which runs one of the world’s oldest hedge funds, was a “largely passive” partner in the Lycalopex venture, according to its court documents that said Vulpes would take the lead in establishing the firm.
Pickering, Vulpes lawyer, said that Lycalopex was now dormant, and that one of its Dubai-based executives had started a food business in Dubai.
The case is: Lycalopex (Dubai) Ltd. v. Merrill Lynch International, High Court of Justice, Queen’s Bench Division, Commercial Court, LM-2016-000062