Philippe Jabre, co-founder of hedge fund GLG Partners, is preparing to hand over running of the firm's funds to co-manager Steve Roth as he prepares to step down temporarily to deal with a regulatory probe.

Investors in GLG, which has $11.5bn (€9.8bn) under management, said Jabre was expecting to hear from the regulators in the latest step of an investigation that has already lasted almost a year, and that Roth would take over temporarily.