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...