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Opalesque Geneva:

ETFS Capital and Lion Point Capital nominated three candidates to WisdomTree Investment's board of directors on Friday, in their latest attempt to create sweeping changes within the underperforming ETF asset manager. Failure to reach an agreement, they said, means they will reveal all details of WisdomTree's mismanagement to all concerned.

ETFS and Lion Point currently own about 13.5% of the outstanding common stock of WisdomTree, and 21.4% of the company upon conversion of their Series A non-voting convertible preferred stock, making them the company's largest economic holder.

The two firms formed a group with regards to their investment in WisdomTree after having independently reached similar conclusions about the significant opportunity to create value through actions, says ETFS' letter to WisdomTree.

Problems at WisdomTree

ETFS had agreed to sell its European ETC business to WisdomTree based on the belief that the combination of the company's U.S. ETF franchise and ETFS' European ETC business had significant value creation potential. "Since then, however, WisdomTree has squandered its credibility, as demonstrated by its destruction of invested capital, inability to align its cost structure......................

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