GLG Partners

GLG Partners
Subsidiary
Industry Hedge fund
Founded 1995
Headquarters London, United Kingdom
Area served
 Worldwide
AUM US$ 30.5 billion (2014)[1]
Number of employees
 104 (2014)
Website glgpartners.com

GLG Partners, Inc. is a London-based hedge fund that, as of 14 October 2010, is a wholly owned subsidiary of British alternative investment manager Man plc. In 2010, it was acquired by Man. GLG then was Europe's third largest hedge fund. The firm now oversees $30.5 billion, as of December 2014. GLG Partners has investment operations in New York, Hong Kong, and Zurich.

GLG is a multi-strategy, highly diversified fund that operates equity long-short funds, convertible arbitrage funds, emerging market funds and long-only mutual funds.[2]

History

GLG was founded in 1995 by Noam Gottesman, Pierre LaGrange and Jonathan Green as a unit of Lehman Brothers. The investment bank span it off in 2000. GLG Partners went public in 2007 through a reverse merger.[3]

In April 2009, GLG Partners acquired Société Générale UK.[4]

On May 17, 2010, it was announced that Man Group plc was to take over GLG partners, valuing the company at $1.6 billion, or $4.50 per share.[5] The price for shares of stock on the NYSE rose from $2.91 to $4.36 overnight. The stock had risen almost 50% before the market opened. The acquisition was finalised on 14 October 2010. It was the largest acquisition in hedge fund industry.[6]

In May 2011, the firm launched the GLG global sustainability equity fund, which focuses on a range of large and mid-sized firms in a number of sectors focusing on sustainability. Sectors include healthcare, transportation, education and water management.[7]

In February 2013, GLG portfolio manager, Carl Esprey, was arrested on suspicion of insider trading. Esprey was one of three men detained and questioned about the trades he made through a private account.[8]

In December 2013, GLG Partners agreed to pay roughly $9 million to settle charges by the SEC. The SEC's order stated that GLG's internal control failures caused overvaluation of the firm's 25 percent private equity stake in an emerging market coal mining company. The false estimates resulted in inflated fees and incorrect assets under management. GLG violated SEC orders which require firms to hire an independent consultant to advise new policies and procedures for the assessment of assets and test the effectiveness of the policies and procedure after adoption. GLG agreed to pay $7,766,667, interest of $437,679, and $750,000 in penalties.[9][10] GLG cdid not admit or denying the charges.[11]

In January 2014, founder of Northern & Shell Plc media group, Richard Desmond, sued GLG for $33 million over investment losses he stated were "too complex to understand". Desmond reported that GLG advised him to enter into a 50 million pound derivatives transaction.[12] GLG denied advising Desmond on the transaction.[13]

Top equity holdings

As of 2015, the top equity holdings of the firm were in the shares of the following companies: Facebook Inc, Splunk Inc, Walgreens Co, Taiwan Semiconductor Mfg. Co. Ltd, QUALCOMM Inc, Visa Inc., Discover Financial Services, Grifols S.A., Atlas Energy L.P, and Pfizer Inc.[4]

References

External links