Investors in publicly traded hedge fund firm GLG Partners this week received bad news from its board of directors. It will not continue paying a regular quarterly dividend on its common stock.

Co-CEO Noam Gottesman said the firm thought it was prudent in the current market environment “to retain capital rather than continue paying a regular quarterly dividend.”

“Furthermore, we recently announced an agreement to acquire Societe Generale Asset Management UK and will continue to seek similar opportunities for us to grow and broaden our business as we move into 2009,” he said.

GLG’s board said it will consider continuing the regular quarterly dividend as well as the payment of a special dividend as and when it determines appropriate in the future.

The firm managed over $17 billion as of the end of September 2008.