Former Hedge Fund Executive Sues London Firm for Unfair Dismissal and Bullying

In a gripping legal battle unfolding in London, Jacopo Moretti, a former senior executive and co-founder of DL and Partners, is suing the hedge fund, its star manager Davide Leone, and four directors for unfair dismissal, bullying, and discrimination.

The case, heard by a London employment tribunal, has drawn attention due to its serious allegations, including verbal abuse, harassment, antisemitism, and failure to accommodate Moretti’s mental health-related disability.

Court documents reveal Moretti’s claims of a toxic work environment, supported by over 60 hours of covert recordings, which the defense argues were unauthorized and taken out of context. As of May 17, 2025, the tribunal is ongoing, with potential implications for workplace conduct in the hedge fund industry.

Allegations and Counterclaims

Moretti, who earned approximately $2 million annually at DL and Partners, alleges years of systematic verbal and psychological abuse, including gaslighting and discrimination.

Diagnosed with post-traumatic stress disorder (PTSD) in 2023, he claims Leone made threatening remarks, including a chilling comment about the cost of hiring a murderer, which the defense dismisses as “light-hearted” and misinterpreted.

DL and Partners, which once managed $1.5 billion, acknowledged Moretti’s disability status in May 2023 but denied all allegations, calling them “groundless.” The defense points to $86 million in investment losses attributed to Moretti between 2021 and 2022, suggesting his legal action stems from performance-related disputes. Moretti’s representative counters that his investment recommendations were ignored, absolving him of responsibility for the losses.

Did You Know?
Hedge funds, often seen as high-pressure environments, have faced increasing scrutiny for workplace culture. A 2024 study found that 68% of financial sector employees reported experiencing or witnessing workplace bullying, underscoring the need for cultural reform.

Whistleblower Protections and Regulatory Context

The tribunal is also examining whether Moretti’s disclosures about the firm’s working environment qualify for whistleblower protections. These disclosures, made to Leone and the hedge fund’s chief lawyer, highlighted the impact of the workplace on Moretti’s health.

The case coincides with heightened scrutiny of non-financial misconduct in the financial sector. Britain’s Financial Conduct Authority (FCA) is set to release new guidelines in June 2025 to address such issues, though the FCA has not commented on this case.

Recent data indicates growing public interest in workplace culture within hedge funds, with discussions suggesting that there must be stronger regulatory oversight to curb toxic environments.

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Moretti’s employment with DL and Partners ended in June 2023, following a leave of absence that began in April 2022. The hedge fund rejected a grievance he filed, prompting the tribunal case.

Simultaneously, Moretti launched a High Court lawsuit against the firm and Leone, currently on hold awaiting the tribunal's decision. Additionally, a 2024 arbitration ruling dismissed Moretti's claim to be a shareholding partner in the fund and ordered him to pay costs.

The tribunal’s decision on damages, potentially including lost earnings, hinges on the judge’s ruling on each claim, making the financial stakes significant.