Media-shy hedge fund star Coffey set for own firm

By Laurence Fletcher

LONDON (Reuters) - Greg Coffey, one of the hedge fund industry's top performers with a pay packet to match, looks set to start his own hedge fund firm when he leaves GLG Partners in October.

Coffey, who finally resigned last week -- forfeiting a bonus reportedly worth around $250 million (125 million pounds) -- after last-minute talks with GLG about his future, has delivered performance in his specialist area of emerging markets that many managers can only dream of.

"He's regarded by colleagues and peers as one of the most successful managers in that space," said one hedge fund executive, who asked not to be named because he had worked alongside Coffey in recent years.

The 37-year-old Australian, who joined GLG in 2003 from a hedge fund backed by industry legend George Soros and now runs more than $7 billion of the New York-listed company's $24.6 billion of assets, won the Fund of the Year award at the EuroHedge Awards for 2007 for his GLG Emerging Markets fund.

This was earned through a detailed knowledge of markets he invests in and an avoidance of areas he doesn't know, as well as his use of all types of financial instruments and his control of downside risks.

He also embraces an active trading style, somewhat at odds with his more laid-back appearance; like many hedge fund managers he regularly wears jeans and T-shirt to work.

"He's a very, very active trader, willing to take all the chips from the table and put them on a week later," the executive who had worked alongside Coffey said.

Performance in recent years has been consistently high. His fund delivered stellar returns of around 50 percent in 2007 and 60 percent in 2006.

"He's done particularly well, last year and the year before. Fifty percent-plus returns both years is very difficult to do. His performance has been outstanding," Neil Wilson, editorial director at information provider HedgeFund Intelligence, told Reuters.

"He is certainly a good fund manager," said an executive who did not want to be named because he invested in Coffey's funds. "He had phenomenal timing through the period."

Such performance has delivered handsome rewards -- Coffey earned an estimated $300 million last year, according to Alpha magazine, and lives in the upmarket London area of Chelsea.

However, the polite and softly spoken married father of two is not one to chase after stardom, preferring to run money or spend time with his family.

As one friend who asked not to be named because of his connection to Coffey said: "He doesn't enjoy the limelight."