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US hedge fund Moore Capital Management has fired one of its top managers after he threw a raucous pool party which featured rappers and costumed dwarves spraying champagne from water pistols.

Brett Barna has been axed by the $15bn (£11.6bn, €13.6bn) hedge fund run by billionaire Louis Bacon after reports broke that he held the party last weekend in the Hamptons – which hosts New York's rich and famous over the summer.

"Mr Barna's personal judgement was inconsistent with the firm's values," the fund said in a statement. "He is no longer employed by Moore Capital Management."

The fund manager had worked at the firm for more than six years and rented the sprawling 14-bedroom $20m mansion in Bridgehampton to host the party on Sunday, reported The New York Post

The Post described the bash as a "Wolf of Wall Street-style party."

More than 1,000 revellers turned up to the spree which saw champagne-gun-toting midgets dressed as Uncle Sam spraying the crowd, while rapper Ace Hood performed on a balcony facing the pool.

Barna rented the mansion for $5,000 a night from an anonymous owner, who now plans to sue him, because the owner was told the gathering was an animal charity fundraiser for 50 guests.

The owner said the house was trashed, art was stolen and used condoms littered the grounds.

Barna could not be reached for comment, and was last seen in public on Sunday drinking champagne and dancing with two midgets.

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