GLG Accounting Change Wipes Out ’06, ’07 Profits

Apr 15 2008 | 1:59pm ET

GLG Partners, the London hedge fund giant that went public last year, has restated its earning for the past two years, wiping out some US$450 million in profit.

The firm, which went public via a reverse mortgage in the fall, said last year’s US$92.6 million profit was actually a US$310.5 million loss, it revealed in a regulatory filing today. It also corrected 2006’s reported US$359.3 million profit down to US$157.9 million.

The New York Stock Exchange-listed firm blamed the restatement on a change in how distributions to limited partners are accounted for.

In the same filing, GLG revealed that Greg Coffey, who manages four of its hedge funds, resigned yesterday, only to have a change of heart today. The firm said he “withdrew his resignation,” and the two sides are now “in discussions concerning a range of options for the future.”

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