A disgraced hedge fund manager’s collection of luxury teddy bears and soft toys sold for more than £1 million when it went under the hammer.

Sources said Paul Greenwood, who pleaded guilty to fraud charges in the US last year, owned the collection which was sold at the Christie’s saleroom in South Kensington, London.

The top lot out of the collection of 1,300 Steiff toys was a Harlequin teddy bear circa 1925, which was sold for £46,850.

Set up in Germany in the late 19th century, Steiff is famous for its hand-finished bears, elephants, rabbits and other animals featuring a ‘button in ear’ to show authenticity.

Teddy bear specialist Daniel Agnew, working as a consultant for the Christie’s Steiff sale, said: “The sale of Steiff: An Important Private Collection has been an historical landmark in the collecting world of teddy bears and soft toys – the largest ever – achieving a total of £1,082,356.

“Today presented an incredible opportunity for Steiff enthusiasts, with more than 220 clients bidding at auction on the most extensive Steiff collection remaining in private hands.”

The collection included toys dating from 1890 to the 1970s.

A Christie’s spokesman would not comment on the identity of the collection’s owner.