Moore Capital’s Coffey bows out as markets stymie hedge funds

GLG ‘Wizard’

Coffey joined Moore with his 12-person team from London- based GLG Partners Inc., where he oversaw more than a quarter of the hedge fund’s $24 billion of assets in 2008 before he left the firm.

The U.K.’s Sunday Times dubbed Coffey the “Wizard of Oz” in a nod to his homeland after his fund surged 51 percent in 2007 and 60 percent in 2006 amid a rally in emerging markets.

Coffey was GLG’s top performer, winning industry awards for his funds. Events started going awry for him in 2008 when he began losing money, and he subsequently resigned in April that year, triggering a slump in GLG’s shares and investor redemptions.

Coffey lost money for GLG clients in 2008 when some of his investments became illiquid during the global financial crisis.

Coffey was the 11th-wealthiest hedge-fund manager in the U.K., with an estimated net worth of 260 million pounds ($420 million), London’s Sunday Times reported in April. He paid about 5 million pounds two years ago for an 11,500-acre (4,650- hectare) estate, complete with its own shooting grounds, on the Scottish island of Jura. Coffey bought two mansions in Sydney in 2005 and 2006, people familiar with the matter said.

Moore Changes

He graduated in 1994 from Sydney’s Macquarie University and started his career at Bankers Trust Corp., according to fund marketing materials. Coffey worked at Blue Border, a George Soros-backed hedge fund, and Bank Austria, before joining GLG in 2003.

Coffey’s departure is the latest in a series of changes at Moore Capital. Bacon told clients in August that he planned to return about $2 billion, or about 25 percent of his main fund, to investors, saying it may be too big for him to generate returns in line with historic profits as “liquidity and opportunities have become more constrained.”

The firm cut as many as 15 investment jobs last month as part of a restructuring of its equity teams, three people with knowledge of the matter said at the time.

Bloomberg News

 

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