Wednesday, 7 May 2008

GLG allows investors to exit emerging markets

Financial News

Jason Corcoran and William Hutchings

05 May 2008

UK hedge fund manager GLG Partners has advised investors in its emerging markets fund they should not be penalised if they remove their money after Greg Coffey, the fund’s manager, has left.

The US-listed firm has received redemption requests in respect of the fund, which accounted for $5bn (€3.2bn) of the firm’s $24.5bn of assets under management at the end of last year.

GLG has received redemption requests of $2.5bn, according to a source close to the firm. A second source close to investors in the fund estimated GLG would receive redemption requests of more than $3.5bn relating to the emerging markets fund. GLG declined to comment on the figures.

Coffey, who resigned last month but agreed to stay on until the end of October, ran a total of $7.2bn in four GLG funds at the end of the year.

A spokesman for GLG said: “We will provide an update on GLG’s emerging markets funds at our first-quarter results on Wednesday May 7. We are in the process of communicating to fund investors the measures we are taking to protect them throughout this period and are confident in the process we have in place.”

The firm told the emerging market’s funds investors, in a letter dated April 25 and seen by Financial News, it was considering making a recommendation that the fund’s independent directors “waive redemption penalties and waive exercise of the redemption gate for the November 3 dealing day”.

The decision whether or not to waive penalties rests with the fund's independent directors, not GLG.

GLG’s share price was trading at $8.91 on Friday. The share price was $13.48 on November 2 when it floated through a reverse takeover.

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