Bloomberg News

Moore Capital Overhauls Coffey Fund Amid Lagging Performance

November 17, 2011

(Updates with Moore letter starting in fifth paragraph.)

Nov. 17 (Bloomberg) -- Moore Capital Management LLC restructured its main emerging-markets hedge fund in a move that may improve the below-average returns posted by Greg Coffey since he took over as manager three years ago.

Coffey, who is based in London, shed almost $100 million of hard-to-sell assets that had curbed his gains, according to two people with knowledge of matter. The underperforming investments will remain in the Moore Emerging Markets fund while Coffey will continue overseeing most of his assets in the new GC Moore Emerging Macro fund.

Moore Emerging Markets lost 7.4 percent this year, said the people, who asked not to be identified because the information is private. That compares with a loss of 3.9 percent by hedge funds on average, according to Hedge Fund Research Inc.

Moore Capital, which is based in New York and was founded by Louis Moore Bacon, offered Coffey’s investors the choice of shifting their money into GC Macro; remaining in the old fund; keeping cash in both funds; or pulling out entirely without penalty, the people said.

Moore, in a letter to investors today, said Coffey and his team are “steadfast in their efforts to continue to grow and succeed in their business” at Bacon’s firm.

“There have been several rumors circulating regarding Greg Coffey’s imminent departure from Moore Capital,” the firm said. “We categorically refute those rumors.”

$700 Million

GC Moore Emerging Macro has about $700 million of assets, and has no plan to gather additional capital from investors for the “foreseeable future,” according to the letter.

The “vast majority” of clients in Coffey’s old fund decided to move their money to his new one, the firm said. Moore said it restructured Coffey’s fund because of “investor requests for a separate vehicle,” according to the letter.

Tom Burns, a spokesman for Moore Capital in London, declined to comment.

Australian-born Coffey, 40, joined Moore Capital in November 2008 as co-chief investment officer with Bacon of the firm’s European business. He previously worked at GLG Partners Inc. in London.

--With assistance from Katherine Burton in New York. Editors: Larry Edelman, Christian Baumgaertel, Josh Friedman

To contact the reporters on this story: Saijel Kishan in New York at skishan@bloomberg.net; Jesse Westbrook in London at jwestbrook1@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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