Few individual hedge funds illustrate the
violent bust and boom cycle that the industry has gone through
over the past two years more graphically than Steve Roth's GLG
Market Neutral Fund.
One of the oldest and best-known hedge funds in Europe - and
one of the best performing over the past decade or more - the
strategy has undergone a rollercoaster ride, losing more than
50% in the 2008 meltdown and since bouncing back spectacularly
with a gain of over 100% to take the fund back over its
Most hedge fund managers had a torrid time of it in 2008.
But few suffered quite such a mauling as those specialising in
convertible arbitrage or multi-strategy. Unfortunately for
Roth, he and his fund do both.
The combination of markets crashing, financial institutions
collapsing, liquidity evaporating, massive deleveraging and
forced selling, heavy investor redemptions and some hefty
margin hiking by prime brokers...