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GLG's losses ease as its assets soar

HEDGE fund giant GLG Partners yesterday revealed its losses narrowed in the second quarter of the year, as rebounding markets helped its level of assets under management soar.<br /><br />The London-based, New York-listed firm said its second-quarter loss narrowed to $24.4m (&pound;14.6m), compared with a loss of $93.6m in the same quarter last year.<br /><br />This came as its assets under management &ndash; a major part in determining how much it earns through fund management fees &ndash; rose 36 per cent in the quarter, to $19.1bn. <br /><br />But the firm, which is facing the loss of star trader Robert Donald to rival Soros Fund Management, reported a 60 per cent drop in the management fees it takes from clients based on their total investment in its funds. And it reported a 52 per cent drop in the performance fees it takes based on whether funds deliver gains.<br /><br />The falls helped weigh onGLG&rsquo;s revenues, which dropped 54 per cent to $86.1m during the period.<br /><br />The company, which abandoned its dividend last year after assets fell by 40 per cent, added clients made a net investment of $2.2bn in the second quarter, rather than a withdrawal, which helped boost the asset levels. <br /><br />Chairman and co-chief executive Noam Gottesman said he had been &ldquo;encouraged&rdquo; by the stabilising asset levels.