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Hedge Fund GLG looking to take Advantage of turbulent markets:

March 11, 2008 – Comments (0) | RELATED TICKERS: GLG.DL

GLG Partners Considers Purchasing Tisbury Capital - Sources
Mar 7, 2008 07:24:48 (ET)

LONDON (Dow Jones)--Hedge fund giant GLG Partners Inc. (GLG) is considering purchasing London-based Tisbury Capital Management LLP, people familiar with the matter said Friday, highlighting how the industry is poised for a round of consolidation as difficult markets produce opportunities for large firms to pick up trading teams and assets.

Tisbury, with about $2.2 billion under management in its Tisbury Fund, has pulled back from efforts to expand its investment strategy in recent weeks, after a series of unprofitable trades in U.S. merger-and-acquisition deals last year. In early February, it shut a 12-person Boston office and eliminated several positions in London.

London-based GLG, meanwhile, said last month it was looking to take advantage of turbulent markets by making acquisitions and recruiting managers from rival funds. The firm listed on the New York Stock Exchange last year and had $24 billion under management at Dec. 31, making it one of Europe's largest hedge fund groups.

The discussions between the two firms are at a preliminary stage, one of the people said, and won't necessarily result in a deal.

Consolidation among hedge funds is relatively rare, but is expected to increase this year as market volatility leads smaller operators to look to larger rivals for more stability. Institutional investors have also been favoring large managers for their allocations, making it more difficult for sub-$500 million funds to attract money on their own.

Last week, $13 billion New York hedge fund group Millennium Management LLC said it is buying London manager Castlegrove Capital for an undisclosed amount.

Tisbury Capital was set up in 2003 by Gerard Griffin, who previously worked at the U.K. arm of Chicago-based Citadel Investment Group, and Stephane Carnot, who left Tisbury last year. It changed the name of its fund last year to Tisbury Fund from Tisbury Europe, to reflect a broader investment mandate, including U.S. M&A. But after underperformance in the U.S. arm, Tisbury shifted the focus back to European M&A deals and shut its Boston office.

Company Web site: http://www.glgpartners.com

-By Margot Patrick, Dow Jones Newswires; +44 20 7842 9451; margot.patrick@dowjones.com

(END) Dow Jones Newswires

March 07, 2008 07:24 ET (12:24 GMT)