Roth’s GLG Market Neutral reaps credit gains on reduced convertibles exposure

Mon Oct 22, 2012

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After staging a spectacular recovery following a difficult 2008, Steve Roth’s GLG Market Neutral Fund has adapted to changing markets and is on course to outperform again in 2012 by focusing more on credit and less on converts

Steve Roth
It is shaping up to be a good year for the credit-oriented GLG Market Neutral Fund – the $800 million-plus multi-strategy hedge fund managed by Steve Roth at GLG Partners.

After a muted showing in 2011, the fund is comfortably outperforming its peers across arbitrage, multi-strategy and credit strategies, having made 13% in the first nine months of the year. And the fund is beginning to see renewed traction with investors, after a sustained period of reticence about investing in credit-related hedge fund strategies.

All of this follows a three-year rollercoaster ride for the Market Neutral Fund, which fell foul of the financial crisis in fairly spectacular fashion in 2008 before staging a dramatic recovery in 2009 and 2010.

The fund lost north of 50% in 2008 – a victim of crashing markets, forced selling, mass deleveraging and a drying-up of liquidity. To make matters worse, investors had taken advantage...

ISSN: 2151-1845 / CDC10004H

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