New York (HedgeCo.Net) – GLG Partners started off the new year by suspending its dividend payments, after capping off a year that saw a steady decline in share value.
This is the first time that GLG, who used to manage $24 billion, has done away with the dividend since it was listed in late 2007. However, with hedge funds seeing a record number of redemption requests, GLG, along with other hedge funds may be trying to salvage as much capital as they can. GLG currently manages an estimated $17 billion.
“We have decided at this time that it is prudent to retain capital rather than continue paying a regular quarterly dividend,” said Noam Gottesman, Chairman and Co-CEO of GLG.
2008 was a tough year for hedge funds across the board. The $3 trillion that the industry was thought to manage at one point, should dwindle down to about $1 trillion, experts say. On average, hedge funds dropped about 19 percent in 2008, according to the Credit Suisse/Tremont Hedge Fund Index.
Shares of GLG closed at $2.27 yesterday, dropping over 80 percent since March 2008.
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