GLG Partners

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GLG Partners
Subsidiary
Industry Hedge fund
Founded 1995
Headquarters London, United Kingdom
Area served
Worldwide
AUM US$ 33.3 billion (March 2015)[1]
Number of employees
104 (2014)
Website glgpartners.com

GLG Partners, Inc. is a London-based hedge fund that, as of 14 October 2010, is a wholly owned subsidiary of British alternative investment manager Man plc. In 2010, it was acquired by Man. GLG then was Europe's third largest hedge fund. The firm now oversees $30.5 billion, as of December 2014. GLG Partners has investment operations in New York, Hong Kong, and Zurich.

GLG is a multi-strategy, highly diversified fund that operates equity long-short funds, convertible arbitrage funds, emerging market funds and long-only mutual funds.[2]

History[edit]

GLG was founded in 1995 by Noam Gottesman, Pierre LaGrange and Jonathan Green as a unit of Lehman Brothers. The investment bank span it off in 2000. GLG Partners went public in 2007 through a reverse merger.[3]

In April 2009, GLG Partners acquired Société Générale UK.[4]

On May 17, 2010, it was announced that Man Group plc was to take over GLG partners, valuing the company at $1.6 billion, or $4.50 per share.[5] The price for shares of stock on the NYSE rose from $2.91 to $4.36 overnight. The stock had risen almost 50% before the market opened. The acquisition was finalised on 14 October 2010. It was the largest acquisition in hedge fund industry.[6]

In May 2011, the firm launched the GLG global sustainability equity fund, which focuses on a range of large and mid-sized firms in a number of sectors focusing on sustainability. Sectors include healthcare, transportation, education and water management.[7]

In February 2013, GLG portfolio manager, Carl Esprey, was arrested on suspicion of insider trading. Esprey was one of three men detained and questioned about the trades he made through a private account.[8]

In December 2013, GLG Partners agreed to pay roughly $9 million to settle charges by the SEC. The SEC's order stated that GLG's internal control failures caused overvaluation of the firm's 25 percent private equity stake in an emerging market coal mining company. The false estimates resulted in inflated fees and incorrect assets under management. GLG violated SEC orders which require firms to hire an independent consultant to advise new policies and procedures for the assessment of assets and test the effectiveness of the policies and procedure after adoption. GLG agreed to pay $7,766,667, interest of $437,679, and $750,000 in penalties.[9][10] GLG cdid not admit or denying the charges.[11]

In January 2014 Richard Desmond, the founder of Northern & Shell Plc media group, sued GLG for $33 million over losses stemming from investments that he stated were "too complex to understand". Desmond reported that GLG advised had him to enter into a £50 million derivative transaction.[12] GLG denied advising Desmond on the transaction.[13]

Top equity holdings[edit]

As of 2015, the top equity holdings of the firm were in the shares of the following companies: Facebook Inc, Splunk Inc, Walgreens Co, Taiwan Semiconductor Mfg. Co. Ltd, QUALCOMM Inc, Visa Inc., Discover Financial Services, Grifols S.A., Atlas Energy L.P, and Pfizer Inc.[4]

References[edit]

  1. ^ GLG Partners Website.
  2. ^ Bloomberg: Man Group to Acquire GLG in $1.6 Billion Deal.
  3. ^ Bloomberg: GLG Partners Going Public in the U.S. Through Merger.
  4. ^ a b "GLG Partners - Investor Profile". Hedge Tracker. Hedge Tracker. Retrieved 15 April 2015. 
  5. ^ Financial Times: Man agrees $1.6bn takeover of rival GLG.
  6. ^ Financial Times: All eyes on hedge fund world’s largest merger.
  7. ^ "GLG Partners launch global sustainability equity fund". Money Marketing. Retrieved 26 February 2013. 
  8. ^ Fortado, Lindsay; Westbrook, Jesse. "GLG Partners’ Esprey Said to Be Arrested in Insider Probe". Bloomberg. Retrieved 15 April 2015. 
  9. ^ "GLG Partners L.P. and GLG Partners, Inc. Agree to Pay Nearly $9 Million to Settle the SEC's Charges". Bloomberg Business. Bloomberg. Retrieved 15 April 2015. 
  10. ^ "UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION" (PDF). SEC. SEC. Retrieved 15 April 2015. 
  11. ^ Agnew, Harriet (12 December 2013). "GLG Partners Agrees to Pay $9 Million in SEC Settlement". Wall Street Journal. Retrieved 15 April 2015. 
  12. ^ Chellel, Kit (6 January 2014). "Man Group’s GLG Sued Over ‘Incomprehensible’ Deal". Bloomberg. Retrieved 15 April 2015. 
  13. ^ Armitstead, Louise (6 January 2014). "Richard Desmond is not a naive investor, says GLG". Telegraph. Retrieved 15 April 2015. 

External links[edit]