GLG third-quarter loss narrows on fewer charges
Hedge-fund manager GLG Partners' third-quarter loss narrowed on fewer charges as the company reported higher assets under management but lower revenue.
The hedge-fund industry has improved its standing this year after coming off its worst year on record in 2008, but questions remain about when hedge funds can manage to generate significant earnings from performance fees.
GLG posted a loss of $114.6m (€77.1m), or 45 cents a share, from a year-ago loss of $162.7m, or 79 cents a share.
Excluding acquisition-related compensation expenses and other costs, the latest quarter's loss would have been 2 cents, compared with a year-ago profit of 7 cents. Analysts polled by Thomson Reuters expected a 1-cent profit.
Revenue slid 53% to $48.2m.
Net assets under management were $21.63bn as of 30 September, up 25% from the prior year and up 13% from the second quarter. Net inflows were $216m, compared with outflows of $2.18bn a year earlier.
Management and administration fees, a key driver of a public hedge fund's earnings, decreased 53%, but expenses fell 22%.
GLG's shares closed Wednesday at $2.88 and were inactive in premarket trading. The stock is up 27% this year.
-- by John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
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