A Brief Update On Vega Assets
GLG hedge fund sponsor, GLG Partners Inc. is publicly owned and manages separate equity and fixed income portfolios along with investment funds.
GLG Partners was founded in September, 1995 by a group of former Goldman Sachs private-client executives. The name is an acronym; the first letter of the last name of the three founding partners - Noam Gottesman , Pierre Lagrange and Jonathan Green. The founding partners were originally backed by Lehman Brothers .[ 3]
GLG has offices in Mayfair , London and Park Avenue , New York .
As of September 2008, it had $23 billion of assets under management.
GLG was listed on the NYSE in November. 2007. At the time, Lehman had an 11 percent stake in the company.
One of GLG's famous traders is Philippe Jabre . Another renowned trader, Greg Coffey , departed the fund in November of 2008.
On May 17th, 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. [ 4] The price for shares of stock on the NYSE (New York Stock Exchange) rose from $2.91 to 4.36 overnight. The stock had risen almost 50% before the market even opened.
Absolute returns funds can be defined as funds which aim at receiving the biggest return possible in all market conditions. Absolute return funds can be categorized into two. In the first one, return funds are maximized by utilizing hedge fund strategies and second in which fixed interest investments are utilized ensuring the inflation outperformed by the investment.
However, absolute return strategies are not something new there they have been prevailing for long time. The only difference is that it is only recently that these strategies have attracted serious attention because investors were searching for some less volatile strategy compared to contemporary investment strategies.
Absolute fund hedge investing opportunity return risk may represent a larger proportion of absolute return if compared to those of relative return portfolios. It is with the purpose to reduce downside risk and volatility. A number of strategies are part of hedge fund. However, strategies which have similar risk or return features can be categorized into three broad segments namely equity long or short, trading and relative value.
Equity Long or Short: The purpose of equity long or short managers is to exploit not only rising but also the falling markets. It is done by keeping hold over long and short positions in stocks. Managers procure stocks which they consider undervalue and also like. Thereafter they sell those stocks that they do not prefer or they think as overvalued. The purpose is fulfilled by borrowing stock of a company whose share value is supposed to fall in future. Thus, the stock is sold and procured again when there is drop in its price and profit is made. The amount of long and short exposure of the managers is adjusted by them considering the prevailing market conditions and opportunities. Other than these strategies, an absolute return portfolio also offers extra flexibility in various equity market conditions.
Trading: Various investment strategies are covered under trading strategies. Nevertheless, the common thing in all these strategies is that none of these is correlated with conventional markets like equities and bonds. The aim of these strategies is to get maximum return irrespective of market conditions.
An allocation within an absolute return portfolio is preferred by trading managers due to two prominent reasons. Firstly, there is non-correlation between managers; thus, different trading styles can be had and markets can be covered. Secondly, returns are mostly not related to conventional markets. These are the prominent reasons behind the fact that absolute return strategies have a high exposure to trading funds.
Relative Value: These funds extract performance by exploiting the mis-valuation of one security with another and during the strategies like arbitrage for part of it.
During the normal market conditions, these strategies establish low correlation with equity and bond markets. It leads to portfolio diversification benefits through relative value funds.
An important part of absolute return portfolios takes its form due to hedge funds. Nevertheless, to achieve this; the portfolio manager must have significant skill and experience. But no one can put question mark on the significance of their role in minimizing volatility and making the strategy more effective to get positive returns irrespective of market conditions.