Star Coffey decides not to go it alone
So star hedge fund manager Greg Coffey has opted to join established firm Moore Capital.
In April, when high-performing, high-earning Coffey resigned from GLG, the market was awash with rumours that he wanted to start up his own firm, pulling in billions from investors.
However, times have changed in the hedge fund industry.
The average fund is down nearly 20 percent so far this year, according to Hedge Fund Research’s HFRX index, while emerging markets funds have taken a particular battering as markets such as Russia and China have fallen.
Fund of funds managers say that top funds that were once able to turn investors away are now open again as investors across the industry withdraw their assets.
So perhaps for Coffey, who forfeited a bonus reportedly worth around $250 million when he resigned from GLG, a start-up has just become too risky for now.
If the shrinkage of the hedge fund industry is giving someone as well-regarded as Coffey reason to think again, then for those without a strong track record times could be very tough indeed.