A US hedge fund manager faces up to 10 years in jail after admitting he deceived investors by overstating the value of a fund he managed by more than $300m (€244m).

The Manhattan federal court said it will pass sentence in December on Edward Strafaci, who was a senior trader at Lipper Holdings, a New York hedge fund firm which was not accused of wrongdoing itself and is not related to Lipper, the data provider, Dow Jones Newswires report.