The founders of Platinum Capital Management, a London hedge fund and fund-of-funds manager started in 1999, have fallen out, leading one of them to file suit to prevent the other from diluting his shareholding.

Craig Reeves took the action in the High Court after what he claimed was his "constructive dismissal" as PCM's managing director last year. Reeves claimed that Peter Sprecher, who provided the capital when PCM was launched, had tried to "ease him out".