Global Investing

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.

Cocktail shaker

We’re hearing a lot about a major shake-out in the hedge fund industry.

George Soros is predicting two thirds of funds could go to the wall as the credit crisis fallout settles on the industry and Q3 data from HFR has shown the more immediate impact as assets shrank by 11 percent in the period.

Now the Aima hedge fund industry association calls in with some sad news. Cocktail dresses are being slung back in the closet as the trade body’s annual reception in London is put on ice.

The Grosvenor House Hotel bash was to take place on Tuesday next week, bringing together the press, hedge fund managers and Aima committee members in the kind of informal setting that could have offered an intriguing glimpse of the tumultuous state of the industry. A spokeswoman tells us though that “things are just too hectic… they can’t afford to take a night off.”