Tuesday, 29 July 2014
Last updated 4 hours ago
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."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…