GLG Partners, the London-based hedge fund that's seen what it would rather you not characterize as an 'exodus' of personnel over the last month, said it "hopes" to retain a modicum of assets from the emerging markets funds run by Greg Coffey, who resigned in April, and then withdrew his resignation, and then reinstated it. At the start of the year the value of Coffey's funds was at about $7.2 billion, before dropping to $6.3 due to investment losses. Noam Gottesman, the co-chief executive of GLG who has been known to say out loud that his former employees cease to exist once they abandon him, commented, surprisingly lucidly and suspiciously calmly that the firm has received $1.7 billion in redemption requests so far, and that the worst case scenario will leave them with about $2 billion. "Obviously," we're sure he wanted to say but didn't, choosing instead to give off an impression of sanity, "it's not going to come to that, once investors get wind of this."
GLG Not Too Concerned About The Threat Of Losing Billions, Due To Secret Weapon
Posted by Bess Levin, May 08, 2008, 11:48am
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Posted by guest , May 08, 2008 12:50PM
The fanfare given Greg Coffey is rather overdone. Sure his EM fund posted a few years of good returns in a huge bull market for EM. However, investors would have made more money by just being long, with no leverage, any number of EM stockmarkets last year including Brazil, Turkey, India.... Now, after a few months of volatility, although most EM assets continue to perform relatively well, his fund is down 19% ytd and he is bailing on his investors to start a new fund, presumably so that he doesn’t have to work his way out of the whole he has created before collecting his performance fee. The press reports he worked for a Soros backed fund previously but doesn’t mention it was closed due to poor performance. His colleague at the Soros fund now runs the Bear Stearns EM fund which also mainly takes big concentrated bets with no hedges and is also down this year. The current markets differentiate truly talented managers that can perform in all market conditions versus the punters that only do well in upward trending markets. Mr Coffey, apparently, is the later.
Posted by guest , May 08, 2008 1:53PM
I "perked" up when I found out via Dealbreaker that Coffey had "ground" out some miniscule numbers. If he keeps "grinding" like that, with his intellectual "filters" in place, he might trade "DRIPs" because he doesn't know "beans" about loyalty it seems. I say, "Fold yer" tent, Coffey, because in PM "Maxwell's house" As Exxon would say, "One Valdez" incident is not "good to the last drop" of oil pollutants. Coffey's "star bucks" make him the envy of traders everywhere.