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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...