Morgan Stanley traders replace Coffey at GLG (Fund News)
GLG Partners has hired two senior traders from Morgan Stanley to replace Greg Coffey, the GLG fund manager whose surprise resignation prompted $2bn of redemptions from Londonâ??s second-biggest hedge fund group. GLG manages a total of $24bn.
The credit crunch has cut off a source of profits for private equity groups by shutting down the option to add new debt to companies they own for the purpose to pay themselves a dividend.
According to Absolute Return magazine, 35 new funds began trading during the first six months of 2008 compared with 72 during the same period last year.
White Peaks Asset Management sues Florian Homm (Fund News)
White Peaks Asset Management sues Florian Homm and Absolute Capital Management for allegedly using investor funds to buy illiquid penny stocks through a brokerage firm in which he owned a 50 percent stake.