A $100 million here, a $100 million there, and pretty soon you're talking about real compensation. U.K.-based hedge fund manager GLG Partners
With those kinds of numbers being thrown around, leaving Goldman might look like an odd decision, but Ben-Brahim can always point to the man whose shoes he'll be filling. GLG is losing its highest-profile portfolio manager, Greg Coffey, who is walking away from a $250 million stock payday to launch his own fund.
What are the lessons for investors here (beyond the Disneyland economics of hedge funds)?
SWFs are a growing opportunity for hedge funds ...
... and I'm not referring to personal ads here. SWFs, or sovereign wealth funds, are government-controlled investment funds that manage part of a country's wealth. Asian and Middle Eastern SWFs have captured the headlines during the credit crisis by making investments in some of the pillars of the U.S. financial system, including Citigroup
At GLG, Ben-Brahim will have wide-ranging responsibilities, one of which is the development of specific hedge fund strategies for SWFs. GLG already has its foot in the door; Istithmar PJSC, a Dubai SWF, owns a 3% stake in GLG and is an investor in some of its funds.
According to the International Monetary Fund, sovereign wealth fund assets could grow to $10 trillion by 2012, from $2 trillion-$3 trillion in 2007. Total hedge fund assets were approximately $2.8 trillion at the end of the first quarter.
Is GLG a ‘buy'?
Ben-Brahim's hire is a tremendous coup for GLG, mitigating the effects of Coffey's departure. (Coffey was managing $6.3 billion at the end of April, approximately one-quarter of GLG's assets under management.) Indeed, it's rare for a trader of that stature to join an existing firm instead of going out on his own. GLG co-CEO Emmanuel Roman, a Goldman alum, was instrumental in coaxing Ben-Brahim to join him.
Is GLG really the most attractive stock in the alternative manager sector, over Blackstone
Related Wall Street Foolishness: