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Thursday, September 19, 2019

GLG reports narrower quarterly loss


Date: Friday, August 7, 2009
Author: Svea Herbst-Bayliss, Reuters

Asset management company GLG Partners reported a narrower quarterly loss on Thursday and beat analysts' expectations, which helped boost its stock price.

The London-based company, one of only a few publicly traded firms to offer hedge fund portfolios, also reported strong returns, which executives expect may help attract new assets.

GLG's (GLG.N) share price climbed 4.2 percent to change hands at $4.25 in early trading on the New York Stock Exchange.

The company's second-quarter net loss narrowed to $24.4 million or 11 cents a share from a loss of $93.6 million or 44 cents a share a year earlier.

Excluding acquisition-related charges, earnings per share rose to 26 cents from 14 cents a year before, beating Wall Street analysts' 4 cents per share forecast.

At the end of the quarter assets under management, which help determine how much an asset manager earns, stood at $19.1 billion, down 19 percent from a year earlier.

The company reported a 60 percent drop in management fees and a 52 percent decline in performance fees. This helped weigh on revenue, which dropped 54 percent to $86.1 million.

GLG, like other asset managers, has benefited from this year's market rally and assets climbed 36 percent from the previous quarter.

The company reported net inflows of $2.2 billion in the second quarter and GLG Chairman and co-Chief Executive Noam Gottesman said he was "encouraged" by the stabilizing flow for assets under management.