GLG Partners

kirkcameron.jpgGLG Partners is BACK IN THE GAME. So, okay, the firm has witnessed a mass exodus of personnel, (including “star” portfolio manager Greg Coffey, who resigned, then came back then resigned again all in one week’s time). Okay, it expects to suffer a similar mass exodus of money (investors are likely to pull half of the $7 billion in assets managed by Coffey when he leaves). Okay, it’s run by a CEO who works under the assumption that former employees are sent to live on a farm after they abandon him. That’s all immaterial—the London-based hedge fund recently made an investment that will assure it can’t lose. PaidContent reports GLG has taken its fate into its own hands, by infusing GodTube, the Christian online video sharing and social networking site, with $30 million. Though GLG declined to comment, we have it on good authority that G-dT.com got the idea to pitch GLG after receiving an anonymous tip about senior management’s grassroots initiative to rescue Mike Seaver from captivity, and offer him the position of running Coffey’s portfolio upon his departure.

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Non-consultant consultants, non-existent former executives, non-departure departures. I give you…GLG Partners. The London-based hedge fund, whose “star” emerging markets fund manager, Greg Coffey, resigned and then took back his resignation and then resigned again all in one week’s time, has lost three more employees from its senior asset management team. Following in Coffey’s footsteps are Michael O’Connor, who traded Asian debt, equity, and convertible bonds, Udo Herschel, who worked on capital structure arbitrage, and Ben Gill, who was with the company for six years and who was most recently a global macro fund manager. Don’t take the mass exodus to mean anything, though, says GLG. The fund assured boutique shop Ladenburg Thalmann, which published a note about the surrealistic laugh factory this morning, that they’re really NBD. Sayeth LT:

“…management has informed us that one of these individuals had been dismissed several months ago and one individual was a consultant on the payroll and will remain a consultant, but not on the payroll. The status of the third individual is not clear as he is seeking to address some personal issues. We do not have basis to believe that there is some sort of exodus occurring at GLG.”

So, really, everyone should just chill. Also, don’t worry about the fact that GLG has delayed its shareholder meeting a month, now rescheduled to take place in early June. There’s a logical explanation for that which doesn’t have anything to do with the hedge fund going down– CEO Noam Gottesman, who, of former employee Philippe Jabre, told Bloomberg last year, “As far as I’m concerned, he doesn’t exist,” needs a few extra weeks to put the finishing touches on a power point presentation called “Former Individuals Under My Employ Who Are Now Dead To Me, Which Belies The Fact That THEY NEVER EXISTED IN THE FIRST PLACE. WHO DIDN’T EXIST IN THE FIRST PLACE? EXACTLY.” Sources tell DealBreaker he’s also still searching for a sufficiently regal-looking pointer with which to draw the audience’s attention to a larger than life projection of O’Connor’s head while noting, “Exhibit A,” and then, with great flourish, hitting delete.
More Executives Exit GLG Partners [Financial News]

The Upside of Regulatory Fines: Career Marketing!

glg.gifAccording to the Times, regulatory trouble hasn’t hurt Philippe Jabre’s (our favorite French finance guy behind Arki Busson) career prospects:

Dozens of banks and hedge funds have been trying to recruit the manager, Philippe Jabre, since he left GLG Partners, one of Europe’s biggest hedge funds, with $13 billion in assets, according to three executives who say they speak regularly with Mr. Jabre.**

Maybe we’re cynical, but we don’t find this surprising. What’s a regulatory fine and a couple of years of minimum security jail time if not the “cost of doing business”? We don’t think Al Taubman and Martha Stewart are suffering from a lack of party invites, so to speak. And we’re pretty sure Michael Milken isn’t.
**And, we assume, may or may not be friends with Jabre.
A Run-In With Regulators Hasn’t Hurt His Résumé [NYT]