GLG Superstar Coffey Down 19% YTD

GLG Partners' (GLG-NYSE) stock has been weak for months now due, in part, to a poor start to the year in the assets under management. The selling pressure on the shares intensified when Greg Coffey, who has accounted for over half of the firms recent incentive fees, announced his resignation in mid-April.

No doubt the distractions are taking a toll on Coffey's and GLG's performance:

Performance of the group’s 40-plus funds had been “disappointing” overall since the beginning of the year, declining 7 per cent on average. “Some funds are below their high-water marks,” said Mr Gottesman, although the group “was still performance-fee positive”.

Assets under management were unchanged from December to March at $24.6bn (£12.6bn). Net inflows, including from new US clients, touched $700m and the group’s assets have risen 53 per cent since the first quarter of 2007. FT

But Coffey, who has likely been spending more time on setting up his new shop than paying attention to the markets, has been spanked for close to a billion dollars while a parade of analysts, prime brokers and assorted hangers-on come to him hat in hand:

GLG said that while Mr Coffey had been a top performer last year, his fund performance had tailed off. The $5bn GLG Emerging Market fund was down 19 per cent in the year to date.

GLG Chairman and CEO Noam Gottesman says he is facing "cross currents" which might be an understatement. Although half of the people on the SellSide might want to leave for the BuySide, the grass ain't always greener, and Bill Miller could certainly attest to.

Resignation and restatement cast shadow on GLG
FT

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