GLG Partners Widens Loss
NEW YORK (
) -- Hedge fund
GLG Partners
(GLG) - Get Report
unexpectedly widened its losses in the second quarter, as revenues declined.
Net loss widened to $74.6 million, or 32 cents per share, from $24.4 million, or 11 cents per share. Adjusted for special items, the loss was $3 million, or 1 cent per share, which includes merger-related expenses with
Man Financial
.
The prior period included gains from the extinguishment of debt and negative goodwill. Still, the company missed analyst estimates of 5 cents per share.
Revenue declined 10.4% to $77.2 million from $86.1 million, as lower performance fees offset gains in management fees.
GLG Partners saw steady inflow during the quarter of $1.5 billion, but assets under management declined 3.6% from March 31 on account of a weaker market. Assets under management as on June 30 totaled $24.9 billion. All three of GLG's funds performed better than the benchmark MSCI World Index and S&P 500 Index during the quarter.
GLG announced on May 17, 2010 that it had agreed to be acquired by Man Group. The merger is expected to be completed by the end of the third quarter.
-- Reported by Shanthi Venkataraman in New York.
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