These are getting boring to report, frankly. GLG partners joins the leagues of hedge funds exercising their withdraw restrictions.
GLG Partners Inc. said it will suspend redemptions from two of its hedge funds because of “adverse economic” conditions after they lost about a third of their value this year. GLG will stop investors from making withdrawals from the GLG Market Neutral Fund and GLG Credit Fund, it said in a statement today. The Credit Fund dropped 35 percent and Market Neutral 29 percent through Sept. 30, and they suffered further losses in October as convertible bonds and loans slumped.
Yawn.
GLG Freezes 2 Hedge Funds That Lost Third of Value [Bloomberg]
Traders don’t lose money; “adverse economic conditions” do.
How long can HFs generally suspend redemptions for? Does it vary much from fund to fund?
I’m guessing they keep them suspended until they can liquidate enough of their holdings to accommodate the number of redemptions?
market neutral…….bwahahahahahaha. Let that term perish with bottle service.
Has anyone seen any numbers for AQR?
@4, right on!!
interesting that a ‘market neutral’ HF drops 29 percent when the market is down by the same
all that market neutral talk is a scam
nice work gents!
*golf clap*
Most of these performance numbers, while down huge, are actually much better than the real “mark to market” performance. If these funds didnt freeze redemptions and actually had to sell assets at current market prices, most would likely be close to worthless. All of these guys get their brokers to give inflated prices on their illiquid holdings which works well until you start getting redemptions and have to sell 20 points below where you have them marked.
The best is Greg Coffey, who screwed the pooch down 50%+ this year in the GLG EM fund, then got to go to Moore Capital as co-CIO! WTF?
Well, Coffey can make mad money in a bull market. And he has long hair.
Actually, Coffey’s returns were not that great considering how much he was probably leveraged. The guy is all hype. He does have long hair though which seems to be enough for Moore Capital
Bitch !!! You betta bring me my money !!!
- Angry investor
the GLG people i’ve met at conferences were were a strange bunch – the rest of us buy-siders wore pretty standard attire, these guys stroll in with jeans and act more like they are on a runway than at a conference. europeans…very odd.
It’s all about raising money for the hedge funds! They don’t need people to manage it – just people to raise new capital (CON the wealthy and institutions).
Evidently Coffey is a supurb sales(con)man.
the entire hedge fund industry is a scam. they’re just long whatever market they’re in.