Tony,
I would put a few more fish in with it, ones that you want in there, of course. I suspect that by itself it feels easily threatened.
Male fairy wrasses are also brightly coloured compared to females. Here are pics of what appear to be a male lubbockis. Look anything like yours?
http://www.themarinecenter.com/wrasselubbocki.htm
http://store1.yimg.com/I/marinedepotlive_1845_4229196