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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note