Mystery is shrouding the apparent collapse in the last few days of Dynamic Decisions Capital Management, the London-based hedge fund management operation led by Italian university professor Dr Alberto Micalizzi.

According to press reports, two of the major investors in the firm’s DD Growth Premium hedge fund – Strathmore Capital and Cadogan – have filed a lawsuit in the Cayman Islands calling for the funds to be placed into liquidation and alleging “gross mismanagement and malfeasance” on the part of the investment manager.

Meanwhile, Micalizzi has been prohibited by the directors of the fund from communicating directly with investors. In a letter to “friends” that was circulated yesterday, Micalizzi disputes the press reports, stating that he “vehemently” denies the “unfounded allegations”.

The news article referred to a broadcast to investors on 13 March in which Micalizzi was supposed to have...