Hedge Fund Magellan Capital’s Office Searched by Dubai Regulator

Dubai’s financial regulator conducted a search last month at the offices of Magellan Capital Limited, following complaints from a former trader who claimed a senior executive at the hedge fund startup had concealed investment losses and prevented staff from flagging risks.

Officials at the Dubai Financial Services Authority went through laptops and company phones as part of the search, according to people familiar with the matter. Some employees were questioned in conference rooms, the people said, declining to be identified as the information is private.

That came weeks after a former trader, Britney Lam, lodged complaints against Magellan ...