GLG To Cap Market-Neutral Fund At US$1B

Apr 19 2011 | 1:33am ET

GLG Partners will close one of its flagship hedge funds to new investors within weeks at it seeks to preserve its ability to post big returns.

The London-based hedge fund, now part of the Man Group, will stop accepting new investors for its Market Neutral Fund when the vehicle reaches US$1 billion in assets under management, the Financial Times reports. That day is expected to come at some point in the next few weeks.

What's more, the fund, formerly manned by former star GLG trader Philippe Jabre, is likely to return some capital to existing investors, rather than grow beyond a level that current manager Steven Roth sees as optimal.

"It's very satisfying to have new money coming in and build relationships with new investors, but it should take second place to performance and organic asset growth," Roth told the FT. The fund returned 85% in 2009 and 35% last year.

The fund once managed as much as US$3 billion before losing more than half of its value during the financial crisis.

"The industry has changed," Roth said, explaining the drastically smaller capacity. "The advantages of managing a smaller fund is that trading has a bigger impact on performance and one has the ability to get in and out of positions even though liquidity has not returned to pre-crisis levels."


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note