GLG Partners, the London hedge fund, has imposed a set of exit charges of as much as 5 per cent on any investor who wants to pull their assets out of Greg Coffey’s benchmark $4.5 billion emerging markets fund before its star manager formally quits at the end of October. <\/p>\n
Once he leaves, redemption would be free. <\/p>\n
Sources close to GLG, which is bracing itself for as much as $4.3 billion to head for the exit in the wake of Mr Coffey’s resignation, said the fund was insisting that fleeing investors pay the redemption penalties, the terms of which are detailed in the original prospectus. <\/p>\n
They said that GLG had made concessions to requests from investors in other areas. <\/p>\n
Penalties depend on the amount invested and for how long. GLG is understood to have written to investors over the past few days to tell them of the charges <\/p>\n
"The charge could be 5 per cent; it could be nothing. It depends on how much you have invested and what the holding period is," said one source close to the hedge fund. <\/p>\n