London-based GLG Partners is reportedly bracing itself for the possible loss of more than $US4 billion ($A4.2 billion) in investment assets as a result of star Australian fund manager Greg Coffey's departure.
GLG chairman and chief executive Noam Gottesman told shareholders the hedge fund had suffered $US1.7 billion ($A1.8 billion) of investor redemptions since late April, when Mr Coffey left to set up on his own, The Times reported.
Mr Coffey, an emerging markets specialist, turned his back on a cash-and-shares payout reportedly worth a further $US250 million ($A265 million) to go it alone.
Mr Gottesman said as little as $US2 billion ($A2.1 billion) of Mr Coffey's former assets could remain after October when he formally leaves after an agreed handover period.
"Clearly, he managed $6.3 billion ($A6.7 billion) as at the end of April and I would expect the bulk to remain until October," Mr Gottesman was quoted as saying.
"Once Greg goes, I would expect to retain at the very least $2 billion ($A2.1 billion) of that money, and hopefully more."
Mr Gottesman said the total potential loss of future assets, which could reach $US4.3 billion ($A4.6 billion) in coming months, was a worst-case scenario.
© 2008 AAP
