Roth’s GLG Market Neutral reaps credit gains on reduced convertibles exposure
Mon Oct 22, 2012
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
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
ISSN: 2151-1845 / CDC10004H
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