Hedge Fund Superstar Coffey Retiring

October 25, 2012 James Heinsman Hedge Fund News

Hot Trader Greg Coffey Retiring at Age 41

One of the celebrities of the hedge fund world, Greg Coffey, has made the decision to retire from the London financial scene and head back home to his native Australia.

Coffey, at age 41, is one of the world’s most talked-about traders, once called the second most sexy hedge fund trader in the world, he is now married with three children. In 2008 he left his then-employer GLG Partners despite being offered a “golden handcuffs” deal to stay worth £156 million. Coffey is just the latest trader leaving the industry this year.

There is a rumor going around that Coffey is leaving because of a dispute with the founder of the firm he is working for now, Louis Bacon of Moore Capital. A more likely scenario however is that after making gobs of money during the past 10 boom years of trading Coffey would like to take his exit while still at the peak. The past few years have been more challenging for Coffey, as it has been for other traders, even of his caliber.

In 2007 Coffey made about £200 million of GLG’s performance fees, topping off a respectable annual return of 22 percent since 2004, and leading to the golden handcuffs offer of 2008. At Moore he hasn’t done quite as well with two smaller emerging-market funds. Those lost 16 percent and 2.3 percent respectively.

So does Coffey’s retirement mean the end of this particular hedge fund superstar? Head analyst of Schmidt Research Partners, Jacob Schmidt says yes.

"I think we have reached the end of the trend of the last 10 to 12 years of relatively easy money. Up to 2008, we had a fantastic run in the hedge fund business, but since then it has become much more difficult. The guys like Coffey who have had an easy run are thinking: 'Why do I need this?' That's why they are leaving."
 

GLG Partners, Greg Coffey, Jacob Schmidt, Louis Bacon, Moore Capital,

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